The Dollar Index continued its downward spiral on Thursday morning after dropping to its lowest level since 2008 this week as the Federal Reserve promised to keep interest rates at rock bottom.
The Dollar Index was down about 0.5% before the start of U.S. trading Thursday, hovering around 73, depths not seen since 2008.
PowerShares DB US Dollar Index Bullish Fund (NYSEArca: UUP) is down more than 7% in 2011.
Meanwhile, the Australian dollar rose to a record this week against its U.S. counterpart amid talk the country will boost interest rates to quell inflation, Bloomberg reported Thursday.
“It’s still a broadly negative dollar story,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd., according to the report. “There’s not much change to the outlook for Fed policy. The downtrend for aggressive dollar selling is firmly entrenched.”
CurrencyShares Australian Dollar Trust (NYSEArca: FXA) has rallied more than 10% over the past three months. Australia’s currency has benefitted from surging commodity prices. [Why the Australian Dollar ETF is Doing So Well.]
CurrencyShares Australian Dollar Trust
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.