An exchange traded fund (ETF) pegged to the dollar’s movements against a basket of foreign currencies was down 1% in early trading Wednesday as the dollar fell close to its 2009 low.
PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) dropped to a new 52-week low on Wednesday. The dollar jumped Monday following S&P’s warning on U.S. debt, but has since erased those gains.
The euro climbed to a 15-month high against the dollar, Reuters reported.
“This is not a euro-centric move and instead is a broadly based U.S. dollar move,” said Camilla Sutton, chief currency strategist at Scotia Capital, according to the Reuters report. “Loose U.S. monetary policy juxtaposed against a European tightening cycle, a warning from S&P that with no credible plan in place the U.S. risks the loss of its AAA status and negative U.S. dollar sentiment have pushed the euro zone problems to the background.”
PowerShares DB US Dollar Bullish Fund
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