Nov. 5 (Bloomberg) -- The PowerShares DB US Dollar Index Bullish Fund ran out of shares and trading of the security was halted for about 45 minutes amid increased bets that the currency will rebound.

The exchange-traded fund that’s managed by Deutsche Bank AG and distributed by Invesco PowerShares Capital Management LLC had 6.6 million authorized units as of the close of trading Nov. 3, according to a filing with the U.S. Securities and Exchange Commission today. Its owners are seeking permission from the SEC, Financial Industry Regulatory Authority and National Futures Association to register another 100 million.

“There’s been a lot more interest in this ETF because investors are using it as a hedge on the dollar,” said David Stec, an ETF options trader at Group One Trading on the Chicago Board Options Exchange floor. “Yesterday, with the amount of options volume they saw, they probably have to add some shares. The ETF is based on the dollar versus a basket of currencies, so if there aren’t enough shares it might trade at a premium.”

The fund, also known by its UUP ticker symbol, rose 1.9 percent to $22.94. The ETF surged from $22.49 when trading was halted at 1:06 p.m. The U.S. Dollar Index, a six-currency gauge of the greenback, added 0.1 percent to 75.72. Its price is 3.3 times higher than the UUP, down from a ratio of 3.36 yesterday and a 28-month high of 3.38 on Oct. 19.

The Dollar Index sank to a 14-month low of 74.97 on Oct. 21. Trading volume on the PowerShares ETF jumped to a record 10.9 million yesterday and today’s volume of 9 million was eight times higher than the average this year.

Trading of bullish options on the ETF jumped to a record yesterday as the Federal Reserve said it plans to keep interest rates at “exceptionally low” levels for an “extended period.” Almost 400,000 calls giving the right to buy the fund changed hands, almost 12 times the four-week average and more than 141 times the volume for puts giving the right to sell.

The ETF has traded since February 2007, while options linked to it have traded since June 2008.

To contact the reporter on this story: Jeff Kearns in New York at jkearns3@bloomberg.net.

Last Updated: November 5, 2009 16:21 EST