Then yen took some lumps over the last 15 years. Japan has a huge trade surplus and its citizens would rather save than spend. One top of that, exports from the country boomed and the carry trade took off and sent the yen down another 45% between 1995 and 2007, reports Stephen Gallo for The Financial Times. [How to Play the Carry Trade With ETFs.]

The tide turned for awhile; Japan’s exports are on the decline and the country’s population is older. Both have eroded yen outflows and have lent strength to the currency. But now, says Mike Kulej at iStockAnalyst, the yen has once again become the cheapest currency to borrow. [3 Things Japan Needs Now.]

Miho Nakuchi for MarketWatch reports that market players who bought the safe-haven Japanese yen did so on growing speculation that the European Union isn’t likely to announce any more specifics on how to solve Greece’s debt problem after the E.U. finance ministers’ meeting. [ETFs to Play Japan.]

For more stories about currency ETFs, visit our currency ETF category.

• PowerShares DB G 10 Currency Harvest (NYSEArca: DBV): DBV can hold positions in any of the following 10 currencies: The U.S. Dollar, the Euro, the Japanese Yen, the Aussie, Canadian and New Zealand Dollars, the Norwegian Krone, the Swedish Krona, the British Pound and the Swiss Franc. DBV tracks an index made up of long futures positions on the three G10 currencies associated with the highest interest rates and short futures positions on the three currencies associated with the lowest interest rates.

• iPath Optimized Currency Carry ETN (NYSEArca: ICI): ICI tracks the Barclays Intelligent Carry Index, which also follows the G10 currencies. Note that ICI is an exchange traded note, so it’s a debt instrument backed by the credit of the issuer. [Differences Between ETFs and ETNs.]

• CurrencyShares Japanese Yen Trust (NYSEArca: FXY)

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

The Canadian dollar has been on a tear, now surging close to a 20-month high as foreign investors pour into the currency. On Friday, the currency closed gaining for 11 consecutive days, the longest streak in 23 years, says Tavia Grant for the Toronto Globe and Mail. This means that soon, the Canadian dollar could hit a record and surpass parity with the U.S. dollar. [Other Currency ETFs to Play Market Conditions.]

Friday’s U.S. employment data and trade numbers had a lot of investors speculating about the long-term potential of a Canadian dollar rally. [Our Guide to Currency ETFs.]

Shocked Investor on Seeking Alpha reports that the Bank of Canada may be set to raise interest rates in the wake of a faster-than-expected job market recovery, which could help keep the trend in place. [9 ETFs for U.S. Dollar Bears and Bulls.]

If you’re playing the Canadian dollar, have an exit strategy at the ready to protect yourself on the downside. [How to Follow Trends.]

For more stories about currency ETFs, visit our currency ETF category.

• Currency Shares Canadian Dollar Trust (NYSEArca: FXC)

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Direct foreign investment into Brazil’s economy is forecast to increase 47% this year, but many are beginning to broach the “B” word – Bubble. Brazil is going to host the World Cup in 2014, the Summer Olympics in 2016, the middle class is exploding and GDP has tripled since 2003. The country’s planning minister expects the economy to grow 6% this year. You can see what’s so appealing about Latin America’s largest country. [Our Guide to the BRICs.]

Last year, international investors added $11.4 billion to their stock holdings, the most since records began getting kept in 1994, says  Joshua M. Brown for The Faster Times. Many believe the money will keep coming beyond 2010, too. [Brazil ETF Shows Is Might.]

The thing about bubbles is that you never know for sure whether it is one until it pops. Whether Brazil is in a bubble or not, you can protect yourself by first learning to spot the signs of a bubble, then implementing a trading strategy that incorporates a stop loss. Ours is set at 8% – high enough that we’re not in and out frequently, low enough to have a limit on losses. By having a point at which you get out, you can participate in any potential long-term uptrend resting assured that your risk on the downside is capped. [How to Spot and Avoid Bubbles.]

For more stories about Brazil, visit our Brazil category.

• iShares MSCI Brazil (NYSEArca: EWZ)

• Market Vectors Brazil Small Cap (NYSEArca: BRF)

• WisdomTree Dreyfus Brazilian Real (NYSEArca: BZF)

China Premier Wen Jiabao took aim at Washington yesterday, criticizing efforts to increase exports through weakening the dollar as “trade protectionism.” He also said that the pressure being placed on China to allow the yuan to appreciate is counterproductive, and that he doesn’t consider the yuan is overvalued. WisdomTree Dreyfus Chinese Yuan (NYSEArca: CYB) is down slightly this morning. [Play the Yuan's Fortunes With These ETFs.]

The United States has been put on notice: its days of top-notch credit ratings are at serious risk of ending. Right now, the U.S. credit rating is Aaa and “stable,” but Moody’s said that its “distance-to-downgrade” has “substantially diminished.” The United States is not alone here; Britain, France, Spain, Germany and others are at risk of downgrades, too. SPDRs (NYSEArca: SPY) are down about 0.7% this morning.

A battle royale over financial reform is shaping up in Congress. Senate Banking Committee Chairman Christopher Dodd is expected to unveil legislation that will be even tougher on the financial industry than President Barack Obama’s original plan. Dodd’s bill will allow the Federal Reserve to examine any bank holding company with assets in excess of $50 billion. Large financial companies that aren’t banks could also fall under scrutiny under the plan. Financial Select Sector SPDR (NYSEArca: XLF) is down slightly today. [6 ETFs to Play the Financial Recovery.]

Industrial production rose last month by a scant 0.1%. Despite the small improvement, it’s worth rejoicing over because it beat expectations and it’s the eight straight monthly gain. Manufacturing was the index’s laggard, declining by 0.2%. Mining and utilities, on the other hand, gained 2% and 0.5%, respectively. Vanguard Industrials (NYSEArca: VIS) is down about 0.3% this morning.

SPDR S&P Russia (NYSEArca: RBL), which competes directly with the popular Market Vectors Russia (NYSEArca: RSX). State Street noted that it created this ETF to give investors the chance to fine-tune their BRIC (Brazil, Russia, India, China) exposure.

Like RSX, RBL’s heaviest weighting is toward the energy sector, at 49%. Other top sectors in the fund are materials (17.9%), financials (11.7%) and telecommunications (8.7%).

Meanwhile, the Russian ruble has been on a tear that, if it continues, could change the economy in some key ways. Owen Vater for TickerSpy says a powerful ruble could lead to interest rate cuts and a further rebound of the country’s largely commodity-tied equity sector. [Russia Diversifies Beyond Oil.]

Russian equities were cited as the most robust economic profile late last year, and many analysts were feeling bullish toward Russian equities. The ruble is now at 14-month highs versus a euro-dollar basket; that could help bring Goldman’s forecast of Russia as a top trading idea this year to fruition if the Russian central bank gets out the scissors. [Russia's Central Bank Lends a Hand.]

Russian stocks and the ADR index that are U.S.-listed have outdone the S&P 500 by 3% over the past month. Market watchers are waiting to see if the recent momentum is for the long haul, or just a flash in the pan. Watch those trend lines and act accordingly. [Our Guide to the BRICs.]

For more stories about Russia, visit our Russia category.

• Market Vectors Russia (NYSEArca: RSX)

• CurrencyShares Russian Ruble Trust (NYSEArca: XRU)

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Yi Gang, head of the State Administration of Foreign Exchange, stated that policymakers will keep the Chinese yuan’s exchange rate at a “reasonable and balanced level,” reports Judy Chen for BusinessWeek. Central bank Governor Zhou Xiaochuan has indicated that the timing of “normalizing” policies won’t occur until the global economic recovery is more “solid.”

Bloomberg estimates that the yuan may gain in the second half of 2010 and appreciate between 3.4% to 6.6% against the dollar by year’s end.

The upward pressure on the yuan might be because of the widening interest-rate differential, says Gang. The spread between China’s one-year deposit rate and its U.S. equivalent hit 1.43% on Tuesday. China holds $2.4 trillion in foreign-exchange reserves, the largest in the world.

The International Monetary Fund Managing Director Dominique Strauss-Kahn stated that China’s yuan is still “very much undervalued,” reports Ed Corpley for Reuters. Strauss-Kahn said that “the crisis has been the trigger for the Chinese economy to move to a more traditional model of growth” and “what goes with this kind of policy is a revaluation of the Chinese currency.”

For more information on the yuan, visit our Chinese yuan category. Or take a look at our ETF currency report.

• WisdomTree Dreyfus Chinese Yuan Fund ETF (NYSEArca: CYB). CYB tries to produce the total returns reflective of both money market rates in China that is available to foreign investors and change in value of the yuan versus the U.S. dollar. The fund is not a “money market” fund, but it does invest in short-term, investment-grade instruments.

• Market Vectors Renminbi/USD ETN (NYSEArca: CNY). CNY is an exchange traded note (ETN) that delivers exposure to the exchange rate of foreign currencies. The fund tries to reflect the performance of the S&P Chinese Renminbi Total Return Index.

Max Chen contributed to this article.

Wall Street seems to be taking a break to pause and reflect this morning in the absence of market-moving economic reports or fourth-quarter earnings reports. While equities have had a volatile start to the year, the MSCI All-Country World Stock Index tells the story of where we’ve been and where we are now: since March 9, 2009, it’s up 73%. The Vanguard Total World Stock Index (NYSEArca: VT), which tracks the FTSE All-World Index, is up 77.2% since the low. [9 ETFs for Dollar Bears and Bulls.]

Oil prices sank to day as the dollar gained strength. The pause is likely because of profit-taking after a monthlong rally in energy prices, fueled by investor optimism and global economic growth. A stronger dollar makes oil more expensive for overseas buyers, sending demand south. United States Oil (NYSEArca: USO) and PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP) are slightly down and up this morning, respectively. [4 Things Fueling the Gas ETF Rally.]

What goes down must eventually come back up, right? The rock-bottom interest rates we’ve been enjoying for the last few years aren’t going to last forever. They won’t be as necessary to help goad an economic recovery, so as the picture brightens both here and around the world, they’ll naturally have to go back up. [9 ETFs for Bullish and Bearish Dollar Sentiment.]

The catch for you, dear investors, is that bond prices share an inverse relationship with interest rates. As rates rise, the price of bonds fall. If you’re holding bonds with the intent to sell them sooner rather than later, this will impact you in the form of lost principal. This is why many investors take a “laddered” approach to bond investing and buy bonds of varying maturities, in order to mitigate interest rate risk. [It's Time to Approach Bond ETFs Differently.]

For more stories about the U.S. dollar, visit our currency ETF category.

• PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP)

• iShares Barclays 1-3 Year Treasury Bond (NYSEArca: SHY): Short-term bonds tend to come in favor as interest rates rise and hit long-term bond prices

• United States Oil (NYSEArca: USO): When interest rates rise, the dollar tends to weaken, which puts various commodities priced in dollars – such as oil – back in favor

• ProShares UltraShort 20+ Treasury (NYSEArca: TBT) and Direxion Daily 30-Year Treasury Bear 3x (NYSEArca: TMV): Long-term Treasuries will be hit the hardest when interest rates are hiked. For the risk-hungry among you, consider shorting long-term Treasuries. Before doing so, though, understand how these funds work! [All About Leveraged and Inverse ETFs.]

For full disclosure, Tom Lydon’s clients own shares of SHY.

To find out all you need to know about the impact of the European debt crisis, just look at the performance of the U.S. dollar in the last three months:

You just can’t argue with the trend seen in the dollar’s performance. There’s a clear argument to make for its longevity, too: While government leaders are getting close to a rescue deal with Greece, even if one does happen, who’s going to make Greece accountable?

Furthermore, why try to predict any outcome? Just look at the dollar, which is solidly above its 200-day moving average. You’ve got to balance the fundamentals with the technicals, and right now, the ingredients are all there.

But the dollar isn’t your only option in these trying times for the euro. The CurrencyShares Euro Trust (NYSEArca: FXE) is down 5% for the year. [ETFs to Ride the Euro's Changing Fortunes.]

Are you bullish or bearish on the euro’s prospects? One way to play your euro sentiment is by using leveraged and inverse ETFs. Speculation in currency trading is highly risky, especially when leverage is added into the mix. Before you jump in, be sure you know what you’re jumping into. Market Vectors Double Long Euro ETN (NYSEArca: URR) and Ultra Euro ProShares (NYSEArca: ULE).

Other currency opportunities can be found in areas well outside Europe. The Canadian dollar, Australian dollar, Mexican peso, Brazilian real and an ETF that holds a basket of currencies have been faring well in the last month:

• CurrencyShares Canadian Dollar Trust (NYSEArca: FXC), up 2.1% in the last month
• CurrencyShares Mexican Peso Trust (NYSEArca: FXM), up 0.7%
• WisdomTree Brazilian Real (NYSEArca: BZF), up 1.7%
• CurrencyShares Australian Dollar Trust (NYSEArca: FXA), up 1.2%
• PowerShares DB G10 Currency Harvest (NYSEArca: DBV), up 1.2%

For more information on world currencies, visit our currency category.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Max Chen contributed to this article.

President Barack Obama placed the blame for out-of-control health care costs squarely on the feet of insurers, accusing them of putting profits before people. He also called out Republicans for ignoring the problems. Today’s speech in Pennsylvania is the first of many to take place as he takes his call for health care reform across the country. Vanguard Health Care (NYSEArca: VHT) is down slightly by 0.3%. [Where You Can Find Value in ETFs.]

AIG (NYSE: AIG) is continuing to unload various units, this time selling another overseas life and health insurance business to MetLife Inc. (NYSE: MET) for $15.5 billion. Earlier this month, AIG sold its Asia-based life insurer to Britain’s Prudential for $35.5 billion. The deals are all in the name of repaying debt that the government loaned the insurer so it wouldn’t collapse and take the American economy down with it. iShares Dow Jones U.S. Broker-Dealers (NYSEArca: IAI) is up slightly by 0.3% so far today. [6 ETFs for a Financial Recovery.]

McDonald’s (NYSE: MCD) is still a powerhouse overseas, seeing its same-store sales drop 4.8% last month. Leading the charge in overseas strength were China, Japan and Australia. In the United States, it’s a different story: same-store sales sank 0.7%. PowerShares Dynamic Food & Beverage (NYSEArca: PBJ) is down slightly so far today; McDonald’s is 4.8%.

While a firm bailout deal for Greece is still up in the air, even the faintest whiff of one has sent the euro higher. France’s President Nicholas Sarkozy stepped forward to say that major eurozone members will do whatever it takes to ensure Greece isn’t isolated. European leaders also bandied about the idea of creating the European equivalent of the International Monetary Fund (IMF) going forward. WisdomTree Dreyfus Euro (NYSEArca: EU) is up slightly this morning. [Eastern Europe ETFs May Outstrip Rest of EU.]