At the start of 2005, the greenback was weaker against both the euro and the yen than it is now, but gained against both currencies in the course of the year.
China has again been preventing the renminbi from strengthening and the jury is still out on whether the country intends to depart from its mercantilist growth strategy.
To stem the currency increases, economies such as South Korea, Taiwan and Thailand intervene in foreign-exchange markets by buying dollars, which can get expensive.