exchange rate

Perhaps the most surprising recent news in the auto industry last week was this little gem. In large part owing to President Obama's negotiation of a free trade agreement with South Korea earlier this year, Toyota will be expanding exports of U.S.-built vehicles to Korea for sale.

Even the phrase "debt ceiling" sounds like something too far removed from daily life to be of much interest. But ignoring the political battle over this issue would be a mistake: How the government handles the nation's debt limit will directly affect our personal finances in all sorts of important ways.

U.S. consumers already have been hit with higher prices for food and fuel. But the rising prices won't stop there. The weak dollar means that prices for imported goods -- and components -- are headed up, further boosting inflation.

China's foreign-exchange reserves jumped by a record 7.5% during the fourth quarter, increasing concerns over the country's inflation, The New York Times reported Tuesday.

The Dow tumbled Tuesday as part of a global sell-off in stocks fueled by further speculation that China will hike interest rates to fight inflation and renewed worries over the wobbly finances of Ireland, Portugal and Greece.

The nation%u2019s manufacturing recovery accelerated in October as factory output jumped 0.5%, the Federal Reserve said. Overall industrial output was flat in the month, but the typical autumn plunge in utilities output skewed the top-line stat lower.

For a host of reasons, other countries would love to free their economies from the stranglehold of the U.S. dollar's influence, especially now, when the Fed's stimulus actions are pushing the dollar lower, and everything else higher. Global finance expert Peter Cohan has a simple answer: The Mondo.

As the G-20 meets in South Korea, many world leaders have stepped up their complaints about the Fed's $600 billion quantitative easing program, as well as the rapid flow of capital into emerging markets. Some countries are installing capital controls in response, but those won't be enough, says global finance expert Peter Cohan.

In Asia on Tuesday, Hong Kong's Hang Seng Index rose 0.1%, China's Shanghai Composite inched down 0.3%. and in Japan, the Nikkei 225 crept up 0.1%. Investors are closely monitoring the U.S. midterm elections, with many predicting that if the Democrats lose their majorities in both the House and the Senate, the dollar will continue to slide.

The G-20 has a second chance to diffuse exchange-rate tensions Friday and Saturday, when finance ministers and central bank governors meet in South Korea. World leaders failed to resolve the currency issue two weeks ago in Washington.