Currencies around the world are shifting as the credit crisis drags on, and exchange traded funds (ETFs) are reflecting these movements.

The U.S. dollar is regaining its strength, but that might not be such a great thing.

Omir Esiner for Marketplace reports that the Mexican peso has declined 20% against the U.S. dollar in one day, and the Icelandic currency moved 35% against the euro as well. The dollar is now sitting at five-year highs against some currencies.

The dollar’s strength has a possible threat to exports, and could have a negative impact upon the domestic economy. While many have wanted to see a rejuvenated dollar, they’re also surprised by the strength and what it could do to our economy. Downward pressure on exports is not desirable right now, as the U.S. economy is already vulnerable.

Brazil eliminated a key tax that foreigners pay on financial market transactions. This is a move that the government is taking to stop a steep slide of the real during the global credit crisis. The real has plummeted 6% during morning trading, reports Renato Andrade for Reuters.

The PowerShares DB G10 Currency Harvest (DBV) is down 26.3% year-to-date.

Tags: Brazil, Brazilian Real, Currency ETFs, DBV, Mexican Peso, U.S. Dollar