The fall of the US dollar

The steady and orderly decline of the US dollar from early 2002 to early 2007
against the euro, sterling, Australian dollar, Canadian dollar and a few other
currencies (i.e. its trade-weighted average, which is what counts for purposes
of trade adjustment), remains significant.
In the wake of the sub-prime mortgage crises in the US, dollar losses
escalated and continued to feel the backlash. The Fed responded with several
rounds of rate hikes while weighing the balance of domestic growth and
inflation fears.