Over the past 90 days, the average loss for the CurrencyShares Euro Currency Trust (NYSEArca: FXE), CurrencyShares Japanese Yen Trust (NYSEArca: FXY), CurrencyShares Australian Dollar Trust (NYSEArca: FXA) and the CurrencyShares Canadian Dollar Trust (NYSEArca: FXC) is 6.2%.
That is good news for the U.S. dollar. Although the greenback has pulled back in recent sessions, there is no denying the U.S. currency has been on a torrid pace over the past several months. Some traders and investors are even betting on additional upside for King Dollar.
“The value of the dollar’s net long position rose to $40.91 billion in the week ended Oct. 7, from $37.36 billion the previous week. This was the eighth straight week that net longs in the dollar have totaled at least $30 billion,” reports Reuters, citing Commodities Futures Trading Commission data.
It is not just the forex market that is seeing a mad dash to bullish dollar positions. Last week, the PowerShares DB US Dollar Index Bullish Fund (NYSEArca: UUP) hauled in $154.8 million in new assets, according to PowerShares data. That is more than quadruple the inflows seen to the PowerShares FTSE RAFI US 1000 Portfolio (NYSEArca: PRF), the second-best PowerShares ETF for inflows last week.
Inflows to UUP have brought the ETF’s assets under management total to $882 million and coincided with professional traders increasing net short exposure to the euro, yen and Australian and Canadian dollars. [Dollar ETF Posts Another Weekly Gain]