Wednesday, March 3, 2010

Breaking News-RTRS-ANALYSIS-Fears aside, US dollar best in a bad neighborhood

New York, Mar 2 (Reuters) - In just a few months, the market's perception of the U.S. dollar has turned 180 degrees.
Last year, the world was worried about a dollar crisis as the ballooning U.S. budget deficit sparked fears the greenback may lose its status as the international reserve currency.
In recent weeks, however, the dollar woes have been overshadowed by fiscal instability in Europe and problems elsewhere. Against a basket of currencies <.DXY>, the greenback has gained more than 9 percent since its lows in November.
Many analysts expect the dollar to stay firm against most currencies this year. While the U.S. deficit is still large, prospects for recovery appear better in the United States than in Europe and Japan. That, along with the uncertainty surrounding the euro zone, should boost the attractiveness of the greenback as an investment.