Inability to Rally With Rates Rising Not a Good Sign For the Dollar

The continued rise in the currencies and a continued decline in the U.S. dollar – even in the months after a big rally in foreign currencies – normally even an extremely unattractive investment gets some rally after a big decline. So far, the U.S. dollar has not had much of a rally.

We have been bearish on the U.S. dollar for years. That has been a correct approach and we remain bearish on the U.S. dollar for the long term. We are however surprised at how friendless the dollar is these days. We had not expected it to be so obviously friendless at this juncture. Even the worst stock or currency usually rallies up after a decline. Maybe the dollar will, but the time for it to do so is running out.

Source: Jim Sinclair