You’d be wrong to write off the dollar

The US dollar may have taken a hammering during the crisis. But don't bet against it, says James Ferguson. Here are five reasons why the greenback is heading for a major comeback.

The US dollar has been hammered by quantitative easing, a massive recession, and a horrendous banking crisis. The dollar trade-weighted index has slid from around 120 in 2002 to around 80 now. Some even argue that the greenback's days as the global reserve currency are numbered. But the bears could be in for a big surprise. There are five key reasons why the dollar is heading for a major comeback.

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James Ferguson qualified with an MA (Hons) in economics from Edinburgh University in 1985. For the last 21 years he has had a high-powered career in institutional stock broking, specialising in equities, working for Nomura, Robert Fleming, SBC Warburg, Dresdner Kleinwort Wasserstein and Mitsubishi Securities.