Correspondingly, the dollar’s share of allocated global foreign-exchange reserves rose to 62.14% in Q4 of 2009, up from 61.5% in Q3 of 2009.
Putting all this in perspective, Alexander Green of Investment U gives several reasons as to why he is bullish on the dollar:
- The multitude of problems in the United States are already reflected in the price of the dollar.
- Economic conditions are worse overseas.
- The dollar will remain the reserve currency of choice.
- Federal Reserve Chairman Ben Bernanke will likely raise interest rates later this year, prompting an inflow of investor money. [Interest Rate Hikes Are Coming.]
For more stories about the dollar, visit our U.S. Dollar category.
- PowerShares DB U.S. Dollar Index Bearish Fund (NYSEArca: UDN)
Sumin Kim contributed to this article.
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.