The dollar slid to new lows for the year against most major currencies as investor confidence continues to return.
The DB US Dollar Bearish Fund (UDN) is up 15% from the March lows. UDN holds futures contracts designed to replicate the performance of being short the US Dollar against foreign currencies including the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
The weakness in the dollar has been closely correlated to the recovery of the global equity markets. Investors’ growing appetite for riskier asset classes such as equities and commodities has softened demand for the safe haven currency.