A while back it was the financial press that was negative on the dollar. These days, it’s the turn of the regular press. If everyone so negative on the dollar, the contrarian thinking would expect a dollar rally.
Last week, the press was all over the news that Gisele Bundchen would only accept Euros for her work because the U.S. dollar is "too weak." On Thursday, the tourism ministry in India issued orders that foreign tourists visiting ticketed monuments and heritage sites in India would need to pay in rupees instead of dollars.
Although in the longer-term, the fundamentals are stacked up against the greenback, in the short-term a dollar rally may be in hand. This may result from a global sell-off. If the global stock market sees further routs, the cash will flow into the safe havens of the US Treasuries thereby driving the dollar up.
Last week, the press was all over the news that Gisele Bundchen would only accept Euros for her work because the U.S. dollar is "too weak." On Thursday, the tourism ministry in India issued orders that foreign tourists visiting ticketed monuments and heritage sites in India would need to pay in rupees instead of dollars.
Although in the longer-term, the fundamentals are stacked up against the greenback, in the short-term a dollar rally may be in hand. This may result from a global sell-off. If the global stock market sees further routs, the cash will flow into the safe havens of the US Treasuries thereby driving the dollar up.
No comments:
Post a Comment