Is there hope for the U.S. dollar and if so, what about the currency exchange traded funds (ETFs) and exchange traded notes (ETNs)?
The dollar has hit lows against major currencies such as the yen and euro. The weak dollar has helped increase the price of commodities, such as oil and food, made imported goods more expensive for the U.S. consumer and probably affected travel plans for the summer.
Investors looking to benefit from the falling dollar can look at ETFs and ETNs that cover currencies from the euro, to the yen, to the rupee. Among the offerings and their performance year-to-date:
- CurrencyShares Euro Trust (FXE), up 8.6%
- CurrencyShares Japanese Yen Trust (FXY), up 8.7%
- Market Vectors Indian Rupee (INR), up 2.4% since March 18th inception
There are some who think this might be it for dollar lows. In fact, the dollar rose today against the euro and has been rebounding against the yen since March, reports Paul R. La Monica with CNN Money. If the Federal Reserve puts a halt on the lowering of interest rates, then the dollar could benefit. If the European Central Bank were to begin cutting rates, this could help the dollar rally.