The dollar is regaining its health, as the rally goes on to another day, raising up the commodities markets and all focused exchange traded funds (ETFs).

But despite all the recent performance, today the dollar has taken a step back amid suspicion that its recent rally has been too quick to keep it up. Since hitting a record low in July, the U.S. dollar has gained 8.1%, report Ye Xie and Corell Eddings for Bloomberg.

On Friday, the greenback climbed to a two-year high against the British pound and the euro, reports David Ellis for CNN Money. The dollar’s recent rise is made more impressive when one considers that it’s happening amid global economic turmoil. The dollar climbed higher than a number of currencies this past month, most importantly, the euro.

ETFs affected by the movements in currencies:

  • CurrencyShares British Pound Sterling (FXB), down 3.6% year-to-date
  • WisdomTree Dreyfus Japanese Yen Trust (JYF), down 5.5% since May 22 inception
  • CurrencyShares Euro Trust (FXE), up 2.7% year-to-date
  • PowerShares DB US Dollar Index Bullish (UUP), up 1% year-to-date

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

Read the disclosure, as Tom Lydon is a board member of Rydex Funds.

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.