A surging dollar triggers an interest-rate war.

This article reports on the interest rate struggle among industrialized nations as they fight to tackle rising inflation rate by tightening monetary policy. The U.S. is leading the industrialized nation after the Federal Reserve Board moved to set discount rate to 13% and the prime rate to 17.25%. Centrals banks in Germany, Japan, France, Italy and Great Britain are planning to raise their interest rates too. The interest rates also pushed the U.S. dollar to surge in the foreign exchange market.