Look at that USD go!!


who’d a thunk the canadian dollar would be back to 80!

Any explanations on why the USD is rallying?

safety & stupidity we got the guns we got the food

Syd_RE Wrote: ------------------------------------------------------- > Any explanations on why the USD is rallying? As much trouble as we seem to be in, the rest of the world seems to be in even worse trouble (espicially Europe with their higher leverage than the US).

And commodity bubble is really bustin

Syd_RE Wrote: ------------------------------------------------------- > Any explanations on why the USD is rallying? Flight to safety. Risk aversion. Call it what you want but basically US based investors are selling risky assets held in other currencies (both developed and emerging markets) and dollars are purchased sending the rates up. The UK situation looking is also looking pretty grim, with people looking to limit exposure to sterling. The yen carry is also being unwound with the yen up significantly vs euro and USD.

its not really flight to safety…but ppl bringing back their money home…i.e. if u have a home loan u will have to sell ur EM mutual fund to make the payments…the repatriation of funds is wats keeping the dollar and the yen bid…dont think it will last long though for the dollar

Also, we’re in the business end of Q3 damage assessment (ie accounting & results). Remember that the European and UK banks have made huge losses on their US dollar denominated “assets” and they now have to cover the FX exposures to their capital bases by buying back the dollars.

It ain’t going to last. keeping the printing presses running day and night is no good for your currency in the long run