Some, including a recent commenter here, have attributed the comeback in part to the alarming deterioration of public finances in Greece, which prompted agencies like Fitch and Standard & Poor's to cut their ratings on Greek government debt. That may have played a very minor role, but Greece has had trouble managing its finances since Homer wore short pants, so it can hardly explain the entire move in the dollar.
He expects the stronger U.S. growth, and the dollar's rebound, to be somewhat fleeting, but he wouldn't bet on the euro doing so well either. The best long-term economic performance is likely to be in the emerging economies of Asia and Latin America, in his view, and their currencies - and stocks and bonds denominated in them - are where the best investment prospects lie.
That makes sense - as long as you have faith that the global economy is on course for continued improvement. If you think there is less to the recovery than meets the eye, then you should expect investors to continue to bid up the dollar - not to capture stronger U.S. growth but to inoculate themselves against slower growth and greater risk everywhere.
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