Jain says US Dollar Under Valued

-------- Original Message --------

Subject:	Why the US Dollar Has Held Up Despite Bearish Sentiments and Bernanke's Policies
Date:	Thu, 25 Aug 2011 11:03:24 -0700
From:	Jas Jain

Why the US Dollar Has Held Up Despite Bearish Sentiments and Bernanke's Policies

In one word: VALUE. It is undervalued against almost all fiat currencies including the Indian Rupee (INR), a currency of dubious value (my target is USD = 100 INR within 3 years, currently at 46).

Please see the attached chart of DXY, the dollar index, for how it keeps bouncing back once it goes below 74.

Bernanke is as impotent to help the US economy now (he can only hurt if he tries more tricks) as are American voters to get a change for the better. The USD, at the current level, has fully priced these negatives, including idiocy and ineffectiveness of Bernanke's ideas, against other currencies whose leaders aren't that much bettter. Relative value matters.

Jas