At an OPEC summit on Sunday, Ahmadinejad said, "They get our oil and give us a worthless piece of paper," a reference to the declining value of our currency and the fact that oil is priced in U.S. dollars in the world market. He went on to blame President Bush for the decline and its negative effect around the world, according to Sebastian Abbot for the Associated Press.
Venezuelan President Hugo Chavez agreed with the sentiment, stating that "the empire of the dollar has to end." Iran and Venezuela have proposed trading oil in a basket of currencies to replace the dollar link, but have so far been unsuccessful because many of OPEC’s members are allies of the U.S.
With all this talk about the falling dollar heating up, there could be more reason than ever to look into currency ETFs to capitalize. Some currencies that are doing particularly well against the dollar as of late are:
- CurrencyShares Euro Trust (FXE), up 10.9% year-to-date
- CurrencyShares Swiss Franc Trust (FXF), up 5.9% year-to-date
- CurrencyShares British Pound Trust (FXB), up 8.7% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.