UUP tracks the moves of the U.S. dollar against other major currencies. The bulk of the action in the PowerShares fund appears to have been driven by professional investors who emerged to buy options in batches of 10,000 or more, and many of the transactions cost $150,000 and up.
Nguyen Ahn Thu, Darcy Crowe, and Will Conners for The Wall Street Journal report that although the U.S. dollar has lost value, it’s still king on the black market in foreign countries. It’s estimated that as much as 75% of U.S. notes in circulation are held outside the United States, and most of that is in the underground economy.
Residents of poorer countries, such as Venezuela, prize the dollar for its inflation-protection ability against weaker local currencies. (Other reasons foreign countries like a strong U.S. dollar).
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