Why is the US dollar so strong again?
STORY: The dollar index – which measures the U.S. currency
against six others – has risen about 2% since mid-April
Although it’s still down around 10%
from last September’s 20-year high
Currency strategists say the debate over the
debt-ceiling could be boosting the dollar
When markets are faced with worries like that, they
often buy safe-haven assets like bonds, gold, and dollars
Others say concerns that the Fed has not yet
slain inflation are part of the story
And some see so-called
technical factors at play
Source: Commodity Futures Trading Commission
The net short bets against the dollar
amounted to $14.56 billion last week
Counter-intuitively, that positioning can help drive rallies
if some traders are forced to close out their positions
by buying the dollar, which then boosts its value
