Naysayers who predicted the U.S. dollar's demise are eating their words. With the financial crisis roiling world markets investors are clamoring for the stability of the greenback.
"Talk of the euro replacing the dollar is off the table," said Michael Woolfolk, senior currency strategist at Bank of New York Mellon. "The U.S. has the only economy in the world that supports a strong currency by policy and is an anchor for the global economy."
The appeal of the dollar stems from about three key factors; investors believe that the United States is the only nation with the political will to act quickly in the face of a financial crisis of this proportion.
Also, the government and private sector infrastructure is in place to implement policies. And U.S. taxpayers have pockets that are deep enough to fund a bailout.