Employees at a foreign exchange brokerage sit at a computer terminal under electric boards flashing the current figures of Japanese yen against dollar and stock market in Tokyo, Thursday, Oct. 2, 2014. (AP Photo/Shuji Kajiyama)
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It was four years ago last week that Brazilian Finance Minister Guido Mantega declared a "currency war" was underway as the U.S. dollar fell amid easy monetary policy from the Federal Reserve.That's because the U.S. currency, as measured by the Bloomberg Dollar Spot Index, has gained almost 7 percent since the start of July and is now around its highest in four years. Behind the rise is the U.S. economy's outperformance against its peers and bets the Fed will be among the first major central banks to raise interest rates. Of 34 economies monitored by HSBC Holdings Plc, only eight currently have inflation above their target and expectations are for that number to drop to three next year.It's already drawing the attention of some at the Fed, even though it would take a 20 percent rally to halve a 2 percent inflation forecast, HSBC said.
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