As equity markets stage their second straight day of gains, the US Dollar index is having its worst day since 1985, and its 5th worst day ever (since 1970). And today's fall for the Dollar broke the uptrend the currency had been in over the last couple of months, although it is still in a longer-term uptrend off of its Spring lows.
Falls in the Dollar are coinciding with gains in equity markets and economic stability worldwide, since the US currency is now being treated as a safe haven. Go figure.
Gold has been the best performing asset class. Why? Something has changed... TED at 2, vix off the map....maybe $ is going to tank?
Posted by: dj | November 24, 2008 at 05:30 PM
I've been assuming the dollar's rise since July has been a function of foreign investment repatriation for the sake of raising capital needed to plug holes in financial institution balance sheets. I fear the "safe haven" trade awaits something physically awful happening somewhere in the world (or in multiple places)...
Posted by: Tom Chechatka | November 25, 2008 at 03:09 PM