US Dollar: At a Crossroads

06/19/2009 12:01 am EST

Focus: FOREX

Kathy Lien

Managing Director and Co-Founder BKForex LLC, BK Asset Management

The US dollar is at a crossroads as currency traders attempt to determine whether the rebound in the dollar has really fizzled. After rallying aggressively on Monday, traders are beginning to sell dollars once again, particularly against the euro and Japanese yen. Before getting too excited about the possibility of the downtrend in the dollar resuming, however, it is important to realize that equity, bond, and commodity traders are divided on the outlook for the US economy.

Over the past few days, there have been disappointments in US economic data, and those disappointments have served as a harsh reminder to traders that tough times are still ahead.

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By Kathy Lien, Director of Currency Research at

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