Greener Greenback

The dollar has been dramatically strengthening against most currencies of late and this will hurt US exports by making them more expensive in local currency and boosting imports, worsening our trade deficit. It’s happening because as our economy strengthens, interest rates will rise, making our currency more desirable to hold. By contrast, interest rate increases in Europe and Japan are years away. To wit, I’m shorting Yen and buying dollars.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.