Treasury boost. Investors are also seeking the safety of U.S. government bonds, which offer a lower but guaranteed return over more risky equities. Investors typically shift assets into Treasurys during times of economic turmoil.
Oil: Commodities such as oil are traded in U.S. dollars, so a decline in the value of oil makes the dollars themselves a much more attractive investment.The cut in oil prices also should probably alleviate some pressure on the U.S. economy. The U.S. is the world's largest oil consumer. That will likely help the dollar in the long-term.The rally in Treasurys was also giving a lift to the dollar because foreign entitites that want to shift assets to U.S. bonds need to first convert their currencies, thereby driving up demand for U.S. dollars.
Global crisis:With the economic crisis is in full swing, cheaper, and thus more easily obtainable, currencies such as the U.S. dollar and the Japanese yen are in a better position to recover later on down the road.Investors are shifting their investments from export-dependent currencies, such as the Australian and New Zealand dollars, to the U.S. dollar and yen, which are cheaper than the euro
