The US dollar is strengthening again, here’s why

There are two things that money seeks out — yield and growth.

Investing in growth is an aim to appreciate capital in the places where the economy is growing the fastest.

Investing in yield is provides upside via safe dividends higher than elsewhere.

Right now the US economy is expected to grow faster than its rivals and it also offers higher yields. Those yields are pushing higher today and further slant the equation towards the US dollar.

Bond yield comparison

Bond yield comparison

Given what we know about growth and the path of US interest rates; the potential for US economy to expand along yields to move up make a very compelling case to buy the dollar.

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