PowerShares DB G10 Currency Harvest Fund (NYSEArca: DBV) has rotated out of its short U.S. dollar position and into a short euro position. The ETF is designed to replicate the so-called carry trade in currencies.

“DBV had been short the US dollar since June of 2009. This is the first time the fund has been short the euro,” Invesco PowerShares said in a statement Tuesday.

Historically, currencies that are tied to higher interest rates tend to increase in value relative to those currencies with lower interest rates, explains Paul Weisbruch at Street One Financial. [ETF Chart of the Day: Currency Harvest Fund]

The ETF grants exposure to a basket of currency futures on G10 countries with the goal of exploiting the historical trend.

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