Betting Against The Dollar

摘要

The Dollar Is Weak, Definitely Not Good News for Americans traveling overseas. That Hermes scarf bought in Paris costs an American 7% more than it did Jan. 1. The euro is hovering at 52-week highs. Investors, however, can ride this trend to their advantage. The ever-canny Warren Buffett has taken huge bets against the dollar, both by shorting the currency in futures contracts and by buying foreign stocks. For a while last year the antidol-lar play looked dumb, but this year it looks clever. The case made by the dollar bears hangs on the U.S. bal-ance-of-payments deficit ($809 billion over the last four quarters). When foreigners who are now stockpiling dollar assets like Treasury notes tire of them, so goes the argument, they will unload dollars, and dollars will sink like stones in the currency markets.