This week, the bullish dollar exchange traded fund (ETF) has benefited from a certain milestone: the U.S. Dollar Index closed just above its 200-day moving average for the first time since October 2006, reports Bespoke Investment Group.

The dollar rose to a seven-month peak on Wednesday against the yen and a six-week high against the euro, as oil prices slid to a three-month low, raising hopes that economic growth would pick up. In trading this morning, the dollar has hit its highest point since late February, Tali Arbel for the Associated Press reports.

Lucia Mutikani for Reuters reports that the rise in the dollar has been spurred on by a renewed appetite for risk after Tuesday’s equity market rally and commodities sell-off. The dollar jumped to 109.71 yen, which is its highest level since early January.

Demand for the euro fell before the European Central Bank held a policy meeting on Thursday. Reuters polled 61 strategists and most expect the euro to trade around $1.54 for the next three months before falling to $1.50 in six months and $1.44 a year from now.

The ICE Futures US Dollar Index tracks the dollar’s performance against a basket of six currencies.

PowerShares DB US Dollar Index Bullish (UUP) could benefit if the dollar keeps moving in a bullish direction. It’s down 2.8% year-to-date, but up 1.4% in the last month.

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

Tags: UUP