Low U.S. Interest Rates Mean Dollar Is Used for Carry Trade – March 26, 2008 – The New York Sun
If you read/heard from your news sources or stock feeds that the US dollar, for some inexplicable reason, has gotten stronger recently, don’t heave a sigh of relief quite yet. Actually what’s happening with the US dollar is this: the dollar carry trade picked up much steam because US dollars had been sold so cheap. Basically what that means is, people are looking for the biggest tree to huddle under during the storm. The US dollar is still pretty much the most stable currency around, though it doesn’t necessarily toss the dollar economy and your American lifestyle any form of lifevest. It’s actually Europe that’s in a rougher patch right now. The Pound and Euro are not doing great at all at the moment.