"The federal debt is growing by more than 10% per annum; Inflationary pressures continue to mount; Shortages of materials - a warning sign of rising inflation - are becoming more numerous; Crude oil is continuing its climb toward $40 per barrel; The US trade deficit continues at or near record levels and on and on and on. The only thing good that happened to the dollar over the past few weeks is that it rallied. It is clear that this rally is not based on factors arising from any underlying fundamental improvement in the prospects for the dollar. No, the dollar has rallied because on a short-term basis it was oversold." =============================== Was the article written about three weeks ago? In which case the dollar has rallied significantly more than indicated by the article. The dollar is also rallying, rightly or wrongly, on the prospects of US interest rate increases, while in euro land that prospect does not exist due to weak growth.
