USD could be an alternative reserve currency investment

To overcome the global crisis, the U.S. has spent U.S. $ 1.6 trillion to the national budget deficit, the dollar is currently rising as the time 35 years ago. The dollar rose 6 per cent since November after falling 12 percent in the first 11 months of the year 2009, the Bloomberg survey. Barclays Capital and Morgan Stanley say the U.S. will grow faster than the developed countries this year and 2011. The countries in the EU such as Greece, Spain and Portugal, and also Japan is struggling, and concerns about valuations in the market. "To quote Mark Twain, reports of the death of dollars have been greatly exaggerated," said Win Thin, currency strategist at New York's senior at Brown Brothers Harriman & Co., which manages about $ 40 billion in assets. The number of U.S. government debt held by investors outside the U.S. rose 17 percent to $ 3.6 trillion in 2009 and in November, according to the Ministry of Finance. Purchases may continue to rise as investors seek protection from credit risk in the euro zone area. Barclays Capital economists said in a statement the same day that U.S. gross domestic product will grow 3.6 percent this year, compared to 2.5 percent for developed countries, and 3.1 percent in 2011, compared with 2.6 percent in the other. Japan's GDP will rise 1.9 percent this year, the eurozone and 1.3 percent, they said. A day earlier, a strategist at New York-based Morgan Stanley raised their dollar estimates, saying it will strengthen to $ 1.24 per euro by year-end from the previous estimate of $ 1.32. Current level of euro traded at $ 1.3664. "With all the concern about the problems with the U.S. financial system last year, the banking sector in the euro zone was slightly more stable," said Robert Sinche, chief strategist at Lily Pond Capital Management LLC in New York. "This created the euro as an alternative currency to the dollar." U.S. Office of Management & Budget said that America's deficit down every year beginning in 2014 to $ 706 billion from $ 1.56 trillion in 2010. "Under stress, people trust the United States will do the right thing," said Sebastien Galy, currency strategy at BNP Paribas SA in New York. "The U.S. is a good place bet". "There is no alternative to the dollar, so the status as a reserve currency can not under threat," said Adam Boyton, senior foreign exchange strategy at Deutsche Bank AG in New York.



USD could be an alternative reserve currency is a good investment given the current global situation began to deteriorate. The crisis in Europe, UK and Asia to make investors become doubtful of the global economy and positive vote holding USD & Yen.