The printing presses in Washington have been running at full speed in an effort to revive the economy, but it could ultimately have an impact on dollar-focused exchange traded funds (ETFs).

According to Pacific Investment Management Corp. (PIMCO), the U.S. dollar is going to weaken as the Federal Reserve pumps large amounts of money into the economy in an effort to salvage it.

  • U.S. authorities have pledged a whopping $12.8 trillion to help fight the recession. PIMCO says that the dollar will drop the most against emerging-market counterparts.
  • The dollar as a percentage of global central banks’ foreign reserves increased to 65% in the first three months of the year, proof that the greenback’s status is faltering.
  • PowerShares DB US Dollar Dollar Index Bullish (UUP): down 5.3% year-to-date
  • PowerShares DB US Dollar Index Bearish (UDN): up 4.4% year-to-date

For more stories about the U.S. dollar, visit our currency category.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.