US Dollar - why up?

[dumbass]

The USD is still viewed as the safest currency so when world equity markets are declining and risk appetite is low money flows into US treasuries and by default the US dollar strengthens because it is being bought.

So the situation where the dollar will strengthen will most likely happen when the equity market weakens which in my personal view is about to happen.

[delinky]

Great explanation. However, how can it be a safe haven when surely to the people it is clear that printing off all this money can only undermine the value of the US dollar. This is where I am struggling. Not all countries are printing money (as yet), so why would one consider the dollar safer?

[dumbass]

Great explanation. However, how can it be a safe haven when surely to the people it is clear that printing off all this money can only undermine the value of the US dollar. This is where I am struggling. Not all countries are printing money (as yet), so why would one consider the dollar safer?

There are many aspects to fund flows and value is not always the prime consideration when seeking a safe haven. Other factors come into play especially when risk is high chiefly liquidity and low volatilty and usually the usd satisfies those criteria.