Investor CAFÉ

The Dollar is Strong and Not in Danger of Collapsing

The dollar has rallied sharply in the past month, continuing a bullish trend since late 2011. It has risen significantly against the pound, the euro, the yen, the Aussie dollar and the Mexican peso lately.

The dollar’s recent rise is reflected in the following chart of the PowerShares DB US Dollar Bullish ETF (UUP).

UUP

King Dollar is all the more amazing given that many doom-and-gloomers have been predicting the “imminent” collapse of the dollar. They know not the signs of the times!

There are several reasons for the dollar’s strength:

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