Jim Rogers: USD Rally Short Lived

USDollarIndex

The Economic Times asked Jim Rogers recently about the recent strength of the USD and if it was here to stay.

I think the USD has been rallying in the short term because it is the evil of two lessers. The EUR and GBP are in line to get hammered, but for now, the USD is in an uptrend. The strength in the USD is most likely buoying the equity markets.

He also likes to say that he is the world’s worst market timer. However, Rogers made a bullish call on the USD in December.

In an early 2009 podcast interview, Rogers said that there would be social unrest in a podcast interview.

From The Economic Times:

ET: The recent strength in the dollar is it here to stay?

Jim Rogers: It’s here to stay for a while because of the serious problems in Europe many people were using the dollars carry trade and now reversing and borrowing at low interest rates and investing elsewhere and now having to take that money back and we burst the carry trade and that makes the dollar go higher for a while. I own the dollar for that reason and I own the Japanese yen for that reason. Both could be temporary beneficiaries of what is happening in Europe.