The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of developed country currencies, fell 1.2% since February 11.
Currently, the U.S. dollar is weakening on the more dovish Federal Reserve outlook. The Fed has stated it will likely hike interest rates two times later this year, down from its previously projected four rate hikes.
As the U.S. dollar depreciates, commodities, like gold, that are priced in USD become cheaper for foreign buyers. Moreover, gold is seen as a better store of value in the face of a weakening U.S. currency.
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