Last year’s Global Currency Expo was held from May 12 – 14. This three-day conference was filled with dollar bears, much as Rodney expects it to be this year. And like he said above, this doesn’t bother him in the least.
As Rodney points out, the value of the U.S. dollar is completely relative. You can’t say what the dollar is actually worth. You can only say what the dollar is worth in relation to the value of some other currency. That’s why the foreign exchange market helps investors determine the worth of a given currency.
Let’s take a look at how the U.S. dollar has fared since the Global Currency Expo closed on May 14, 2011:
As you can see, the U.S. dollar has gotten stronger against every major currency except for the Japanese yen – whose defiant strength we cover in the August issue of Boom & Bust. The dollar’s appreciation against the euro and the Mexican peso – each approaching 13% – is impressive to say the least.
But the greenback isn’t simply benefiting from trouble in the euro zone. It’s beating out the Australian and Canadian dollar – both of which have been supported by strong commodities markets. This shows the U.S. dollar’s strength as the world’s safe-haven reserve currency of choice.
And it’s why we continue to bet on the dollar.
If you haven’t done so already read the Survive & Prosper issue on “Which Side Are You On…U.S. Dollar Up or Dollar Down?”.
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