The U.S. dollar has been a currency in decline for decades. Yet signs of strength in the U.S. economy, a stock market boom and the prospect of the U.S. becoming a net oil exporter in the next few years all suggest the tide may be turning for the world's most widely-used currency.
"I do believe we've seen a favorable shift in sentiment towards the U.S. dollar," said Ed Ponsi, managing director at Barchetta Capital Management in New York. "Ten years ago it was widely assumed that the euro would eventually supplant the dollar as the world's reserve currency, but that is no longer the case."
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The dollar index, a measure of the dollar's value against currencies of the United States' major trading partners, last week hit its highest level in almost three years at 84.50. It held near that peak on Wednesday, a day after strong U.S. data lifted the blue-chip Dow Jones Industrial Average to a record high.
The downtrend in the dollar has lasted almost 30 years because of weaker economic growth and more recently by money printing to fund asset purchases by the Federal Reserve.
The dollar index is currently at around 84.25 - well below a peak above 157 hit in 1985 and where it traded just under 120 before the tech-bubble burst in 2001. Still it has been creeping higher this year and the trend is expected to pick up in coming months.