Weak Dollar | featured news

China should guard against risks from "excessive" holdings of U.S. assets as Washington could pursue a policy to weaken the dollar, a senior official at the State Administration of Foreign Exchange said in comments published on Tuesday.

It's making imports and trips to Europe more expensive, but it's also making American products and visits to the U.S. cheaper for foreigners. It might just be the tonic the economy needs.

The falling dollar is stoking fears of inflation and worries about the country's eroding power in the world. But for now it may be just the tonic that's needed to help the U.S.

The US trade deficit shrank in August as the weak dollar boosted exports, according to the Commerce Department.