The dollar tumbled last week versus European and the commodity currencies amid concern about the exposure of the top financial firms to the subprime crisis and the surging oil prices. But the US stock markets hit new highs amid M&As and this creates a fragile balance in the FX markets. *The dollar is heavily oversold, but buy it only on a stop-loss order. *The carry Trade remain in good shape, and this should remain the main path to follow.