Currency Exchanges

Could the world's currency of choice have the face of Mao Tse-tung on it, not George Washington? Quixotic or not, the Chinese are preparing for that day. In a series of what might be called baby steps, Chinese officials recently have moved to globalize the yuan and promote its influence overseas, with Shanghai designated as command central.

In the Federal Reserve's battle to keep the U.S. economy from a severe downturn, the beleaguered dollar is getting walloped anew. That is going to worsen the sticker shock for Americans headed overseas or buying some of their favorite imported goods. But it also will underpin the current boom in U.S. exports, which has helped to offset some of the economic pain of the housing bust. The euro currency jumped to a record high against the dollar Wednesday, reaching $1.512 from $1.497 on Tuesday.

With the declining value of the U.S. dollar and increasing wine sales overseas, Charles Shaw wine, an American favorite, may seem in some places more like "One-Buck Chuck." ? That's because the low value of the dollar is starting to turn California wines into bargains abroad. ? 2007 was a vintage year for wine exports, which grew by almost 9% to a record $951 million, the Wine Institute, the industry's main trade group, said Thursday. California wineries make 95% of the U.S. wine sold abroad. ?

The gravity-defying price of oil shot through another barrier Monday by briefly touching $103.95 a barrel in New York trading, the highest cost ever for black gold even after adjusting for inflation. Before Monday, the April 1980 price of $38 was the pinnacle, fueled by dramatic Mideast events including the failed rescue of American hostages in Iran. Adjusted for inflation, that $38 is now more than $103.

It's confusing. The pale blue bank note that says 1,000,000 Zimbabwean dollars really means 10,000,000,000,000,000,000. Yes, that's 10 quintillion, taking into account the 13 zeros Zimbabwe's central bank has lopped off in the last couple of years to make the country's currency somewhat more manageable. Every time they get out of hand, Zimbabwe's Reserve Bank scythes away 00000s.

Get ready to shell out more for that European vacation, and for your favorite goodies exported from the Continent. The euro currency hit a record high against the dollar Friday, surpassing its previous peak reached in 2004. New Yorker Russell Phillips, who was visiting Berlin's famed Brandenburg Gate this week, said he was trying not to think about the dollar's sinking value. "Maybe I'll regret it when my credit card bills come," he said. "Of course, everything is more expensive."

The dollar is back to its losing ways against its rivals, cutting Americans' purchasing power abroad but also boosting their returns on foreign investments. The euro Tuesday tied its record high against the dollar, rising to $1.383 in New York, up from $1.381 on Monday and matching the peak reached July 24. At the start of the year the euro was worth $1.32. The dollar also has been sliding in recent weeks against the British pound, the Japanese yen and Brazilian real, among other currencies.

On his way to Italy this week, John Blount was dreading the message he'd have to give the artisans who make the pasta and tomato sauce his San Francisco company imports to the U.S. With the dollar hitting yet another record low against the euro in recent days, Blount faces the prospect of paying more than ever for the linguine, bucatini and other goods he buys in Italy. He could raise prices for his American customers, but at the risk of losing their business.

Before 21-year-old Neel Bhuta spent a semester abroad last year, the New York University economics and history major carefully studied the cost of a beer abroad. In Prague, Czech Republic, $2 was expensive by his standards, even compared with the $8 he would pay in Rome. "One of the reasons I chose to go to school in Prague was that it was not tied to the euro and was going to be a lot cheaper," Bhuta said.

The euro zone is mounting a fresh bid to halt the dollar's slide against the euro as a meeting of the Group of 7 economic powers approaches, but the United States kept silent on the issue on Tuesday and Britain distanced itself. In advance of the G7 meeting, scheduled for Oct. 19, finance ministers from the 13 euro zone countries were seeking a gesture of support from U.S. Treasury Secretary Henry M. Paulson Jr., a key player who has so far refused to sing from their songbook.