No one can predict future movements in the foreign exchange markets successfully, (or if they can, they sensibly keep very quiet about it). There is, perhaps, less of a consensus now, than there was in the latter half of 2004, that the dollar was almost bound to depreciate further, and easily might plunge at some stage. Nevertheless, given the continuing large current-account deficit in the United States, which will be augmented by increasing outflows of interest, profits and dividends from its