An exchange traded fund (ETF) tracking the greenback has seen its assets plunge as investors flee the dollar.

PowerShares DB US Dollar Index Bullish Fund (NYSEArca: UUP) is an $857.1 million ETF. At the end of March 2010, it had nearly $1.7 billion in assets, according to National Stock Exchange data.

Investors have been steadily pulling assets from the currency ETF, while the dollar has weakened against rivals. PowerShares DB US Dollar Index Bullish Fund fell to a new 52-week low on Thursday to end a tough week.

With low interest rates, inflation fears and the huge federal budget deficit, many see the dollar continuing to weaken, The Wall Street Journal reports.

“The dollar just hasn’t had anything positive going for it,” said Alessio de Longis, a currency fund manager, according to the report.

The dollar index closed last week at its lowest level since the summer of 2008, according to the newspaper.

PowerShares DB US Dollar Index Bullish Fund

The opinions and forecasts expressed herein are solely those of John Spence, 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.