The bullish dollar exchange traded fund (ETF) has been on a tear in recent months and is one of the few standouts in a sea of red.
The PowerShares DB U.S. Dollar Index Bullish (UUP) is up 14.7% for the last three months, and is up 8.1% year-to-date.
The good times might continue, as the dollar is now at an 18-month high on strong demand from financial institutions seeking a safe haven, reports Lucia Mutikani for Reuters.
Analysts also say the dollar is fueled by signs of momenutum building for a second economic stimulus package. There’s also speculation that banks will need more dollars to settle credit derivatives tied to the Lehman Brothers bankruptcy.