One Investing Strategy that's Working: The U.S. Dollar
The PowerShares DB U.S. Dollar Index Bullish (NYSE:UUP) has increased 6.2% since Nov 4th, coming off its 52-week low as investors around the world exit emerging market currencies for the ol' trusted dollar.
The UUP has officially bottomed, hitting its 52-week low on Nov 4th the bullish dollar fund has moved from $21.91 to today's closing price of $23.35. Thhe euro has tumbled from its recent high of 1.414 against the dollar to near 1.31 on Monday, a fall of about 7% in less than four weeks.
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The move resembles a similar pattern to April, when fears over Greek debt defaults triggered a soft patch for the market that lasted through most of the summer.
The dollar rally could be short lived, but with Portugal or other European nations as the next card to drop, more money could flood into the UUP which could still benefit in the short term as money moves into the greenback.
PowerShares DB U.S. Dollar Index Bullish (NYSE:UUP)
UUP shares have traded between $21.91 and $25.84 over the past 12 months and closed the day at $23.35, up 0.6% or 14 cents. The PowerShares DB US Dollar Index Bullish Fund (the Fund) is a separate series of PowerShares DB US Dollar Index Trust (the Trust). The Fund’s subsidiary is DB US Dollar Index Bullish Master Fund (the Master Fund), a separate series of DB US Dollar Index Bullish Master Trust (the Master Trust). The Fund offers common units of beneficial interest (the Shares) only to certain eligible financial institutions (the Authorized Participants) in one or more blocks of 200,000 Shares, called a Basket. The proceeds from the offering of Shares are invested in the Master Fund.