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May 8, 2008

Is U.S. dollar poised to make a rebound?

By TIM PARADIS
AP Business Writer

NEW YORK — With higher prices at the gas pump and the grocery store, consumers might not be looking favorably at the dollar — one of the reasons for the recent run-up in commodities prices. But for investors, bad feelings about the dollar could dissipate if the greenback shows greater strength.

While currency investments are volatile and only meant for a small portion of an average investor's holdings, they can act as ballast for a portfolio by moving independently of stocks and bonds. With the dollar swooning, some currency investments have lately seemed to be something for only the bravest of investors. But now some investors are wondering if currencies might be in for another shift.


 
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