Naysayers Eat Crow as Dollar Index Roars
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The USD Index is testing levels that haven't been seen since 2010. The rally in USD began in May 2011, when the price of the index was 72. Now, as the price of the index reaches 82, many analysts who predicted the dollar's demise are forced to eat crow.
Much of the run up in the U.S. dollar has been tied to fear coming out of Europe as they wrestle with the prospects of a Greek exit. The dollar's safe-haven status is further supported by huge demand for U.S. Treasuries, despite record low yields.
An interesting point to note is that investors are favoring the dollar against both the Euro and emerging market currencies. Even the Yuan, long supported by the Chinese government, is moving lower against the dollar today. Other emerging market currencies, such as the Indian rupee, are collapsing as the US dollar gains.
The US dollar index can be traded using the ETF, PowerShares DB US Dollar Index Bullish (NYSE: UUP).
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Much of the run up in the U.S. dollar has been tied to fear coming out of Europe as they wrestle with the prospects of a Greek exit. The dollar's safe-haven status is further supported by huge demand for U.S. Treasuries, despite record low yields.
An interesting point to note is that investors are favoring the dollar against both the Euro and emerging market currencies. Even the Yuan, long supported by the Chinese government, is moving lower against the dollar today. Other emerging market currencies, such as the Indian rupee, are collapsing as the US dollar gains.
The US dollar index can be traded using the ETF, PowerShares DB US Dollar Index Bullish (NYSE: UUP).
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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