Currency ETFs Rise On Weak Dollar

Foreign currency-focused exchange traded funds (ETFs) rose this week as the U.S. dollar continues to fall to record lows. The dollar plunged after Chi Siwei, vice president of the Chinese National People’s Congress, commented that China may diversify its $1.4 trillion foreign exchange reserves away from dollars to euros, reports Wanfeng Zhou for CNN Money. The U.S. economies lack of health mixed with narrowing interest rate differentials between the dollar and other currencies are becoming a heavy worry. Some of the currency ETFs and their performance over the past month:

• CurrencyShares Euro Trust (FXE) up 3.3%
• CurrencyShares Japanese Yen Trust (FXY) up 2.0%
• CurrencyShares British Pound Sterling Trust (FXB) up 2.6%
• CurrencyShares Australian Dollar Trust (FXA) up 4.0%
• CurrencyShares Canadian Dollar Trust (FXC) up 6.9%
• CurrencyShares Swiss Franc Trust (FXF) 3.2%

For full disclosure, Tom Lydon is a board member of Rydex Investments.