The CurrencyShares Japanese Yen Trust (FXY) exchange traded fund (ETF) is one of many currency ETFs that benefit from a weak dollar. Currently, it is up 4.8% for the last three months. FXY has an especially interesting relationship with the U.S. dollar because of the yen carry trade.
The dollar has been taking big hits because of the housing sector that continues to decline. The National Association of Realtors said its index of pending home sales slid 12.2% in July compared with a month earlier, according to Simon Constable for TheStreet.com. The dollar could continue to fall on the news released Friday that Countrywide Financial Corp. will cut as many as 12,000 jobs as it struggles to deal with the challenging conditions in the mortgage industry, reports Alex Veiga for the Associated Press.
Read the disclosure, as Tom Lydon is a board member of Rydex Investments.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.