ETF Trends
ETF Trends

The U.S. dollar-related exchange traded fund continued to climb Friday, with the USD touching its 13-year high, as traders raised bets that a Donald Trump presidency would bolster growth and trigger a tighter Federal Reserve monetary policy.

The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) rose 0.3% Friday and increased 2.2% over the past week. UUP tracks the price movement of the U.S. dollar against a basket of developed market currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc,

Meanwhile, the U.S. Dollar Index was hovering around 101.2 and at one point was trading around its highest since April 2003. The USD is also on track for its 10th consecutive day of gains, or its longest winning streak since 2012.


Market observers argue that Trump’s economic policies, notably a potential fiscal stimulus package, will continue to strengthen the U.S. dollar and cause investors to exit government bonds on expectations that the Federal Reserve would have to hike interest rates faster-than-expected to contain inflation, reports Jamie Chisholm for the Financial Times.

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