[lbo-talk] Overbought US dollar

[ken hanly]

As  I understand it one of the reasons that the US dollar is so strong right now is that there are many loans being paid off that were in US dollars and that has meant that a lot of dollars are being purchased to pay them. This results in  a higher dollar. Commentators speak of the dollar being overbought. Is there any objective way of telling if something is overbought. Intuitively if the demand for dollars is increased because of loan repayments or because for some reason investors see the dollar as a safe haven it would be "natural" for the value of the dollar to increase.

  Isn't this situation likely to create something like a dollar bubble in which eventually the value of the dollar will crash?

Cheers, k hanly

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