King Dollar Hits A 30-Month High
The greenback continues its comeback........
The dollar is king of the hill again -- at least for now.
Amid the cascading credit crisis, the U.S. currency has reclaimed its status as the world's haven in tumultuous times. With investors rushing to sell everything and shove the proceeds into dollars, the greenback has gained more than 11% against the euro in October alone. Since the spring, when the mortgage crisis picked up speed, the dollar has gained some 22% against the euro. It has also strengthened against the British pound, the Swiss franc, the Australian dollar and others, though it's weaker against the Japanese yen.
This reversal halts, at least temporarily, a longstanding bearish trend that had seen the greenback slide against major world currencies for much of this decade. Today's newfound strength has consequences for investors, consumers and travelers. A more robust dollar weakens the benefit of investing abroad, yet makes imports, commodities and even an overseas vacation more affordable.