The U.S. dollar index which measures the value of the dollar relative to a basket of six major foreign currencies, has increased over 5 percent since the beginning February. While this may not sound like a big move, it is actually quite significant for such a short period of time.
The move into the U.S. dollar reflects continued uncertainty in Europe ("flight to quality") as well as the improving economic data we have received in the U.S. over the past few weeks. Investors are especially encouraged by the recent housing data, which continues to suggest that this important sector of the economy is on the mend. Indeed, it appears that the U.S. is becoming an even fancier house in a still-impoverished neighborhood.



