The Curious Case of the U.S. Dollar

Includes: UDN, UUP
by: Bespoke Investment Group

As equity markets test their November lows, the US Dollar index is testing its November highs. The US Dollar has been a peculiar "risk-flight" trade throughout the credit crisis, as global investors have flocked to the currency with the belief that other sovereign nations are even worse off than the US. This comes at a time when gold is also rallying to new highs, and the US money supply is increasing at an astounding rate.

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