Dollar Is Evolving From a Haven Into a Must-Have Recovery Play
- Economic rebound could send capital to stocks, U.S. currency
- Rising Treasury yields likely to make dollar bid a carry trade
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The dollar has long been a safety trade for global investors. But in post-recessionary phases with the help of fiscal aid, it can double as a bet on a global recovery. With that in mind, as capital flows to the U.S. increase, so might the bid for the currency -- much to the chagrin of traders who entered 2021 with overstretched short dollar positions.