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Foreign inflows have played a role.
"What has changed are foreign inflows," he said.
See articleBrazil raised taxes on foreign inflows of capital for the second time this month.
On the other hand, some of the initial ebb would be offset by foreign inflows.
In the longer term, currencies tend to adjust to bring foreign inflows and outflows into equilibrium.
Countries from Brazil to South Korea have introduced a plethora of taxes and restrictions to deter foreign inflows.
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As the dollar recovered in mid-June and July, huge foreign inflow into the U.S. bond market dried up.
Companies rely on foreign capital inflows.
South Korea cited the need to check speculative foreign capital inflows.
Foreign portfolio inflows have played a key role in fuelling this boom.
America's huge (and still growing) current-account deficit has been financed in large measure by foreign portfolio inflows.
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