Volatility in currency markets has surged to unprecedented levels.

In the words of one analyst, "moves in foreign exchange markets witnessed for a few hours of negotiation ..." often what we see in a quarter. "The currencies of both countries and emerging markets of the industrialized nations have been battered indiscriminately, as investors have fled to places perceived as less risky, ie the U.S. and Japan. On the one hand, a stronger U.S. dollars had almost completely eased inflation in the U.S. and thus make it easier for the Fed to continue cutting interest rates.

On the other hand, exports from the U.S., formerly one of the few bright spots in the economy low, it will become less competitive. Then there is deflation, has long been relegated to history books, but now once again considered a threat. Countries whose currencies have fallen, meanwhile, have difficulties to convince investors to stay, and have taken to the deployment of its foreign exchange reserves as a measure to stabilize their economies.