JAZ

Is the Dollar Rallying on Realigned Expectations?

I think Aly-Khan got it right in that the US markets and the dollar have already been taken to the woodshed, other economies are lagging both in terms of feeling and fixing (by reducing rates) the pain. So on a relative basis US rates will rise in the short term supporting the dollar. In the longer term the dollar is toast until the deficits at least stop growing.