The Dollar May be Near the ‘Tipping Point’

Beacon Equity      

Speaking to hosts Matt Nesto and Jeff Macke of the Yahoo finance’s new daily trading and investing show “Breakout,” world-renowned investor Jim Rogers said he is considering buying the U.S. dollar at current levels.

Rogers, a U.S. dollar bear in the longer-term, has in the past repeatedly stated that it’s unlikely that the dollar will go straight down and that from time-to-time overly negative sentiment on the dollar in the short term could pose a buying opportunity – as when he predicted a rally in the dollar in the fourth quarter of 2009.

The U.S. dollar reached an intermediate low of 74.227 on the USDX on Nov. 25, 2009, then rallied strongly to as high as 88.708 on June 7, 2010.

“I’m actually thinking of buying the U.S. dollar. I see that it is really getting pounded right now,” he said.

For decades, significant geo-political concerns have herded investors to the safe harbor of the world’s reserve currency. Now, dollar weakness shown throughout the period of rolling crises in N. Africa, Middle East, and now, Japan, has Rogers hedging his view of the greenback.

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Jim Rogers has taught finance at Columbia University’s business school and is a media commentator worldwide. He is the author of Adventure Capitalist, Investment Biker, Hot Commodities, A Gift to My Children, and A Bull in China. See his website.