Nouriel Roubini : US dollar tends to strengthen when there are periods of risk off and risk aversion in the global economy. When there are episodes of risk aversion deriving from trouble in the Eurozone or geopolitical risk, people tend to dump emerging market currencies, euro and seek safety of the US dollar, US treasuries. This is not because economic, financial and fiscal conditions in the US are very good, but the US is the least ugly in a contest where the issue is not who is the prettiest or more handsome, but who is the least ugly.
That overall might be bullish for the US dollar again, not because things are great in the United States, but just because in relative terms, they are worse in other parts of the world.
Nouriel Roubini nicknamed Dr. Doom and lately Dr. Realist by CNBC , is a professor of economics at the Stern School of Business, New York University and chairman of RGE Roubini Global Economics, an economic consultancy firm . Prof. Nouriel Roubini A world-class economist who offers an unflinching look at the global meltdown and distinctive insights into its course going forward. His research on financial crisis in emerging economics has yielded a unique and now vindicated approach to future collapses. Roubini speaks on the global economic outlook and its implications for the financial markets. From his analysis of past collapses of emerging economies, he has identified common factors that support his predictions of crisis in the US and world markets. He has held several high-level advisory positions in the US government and international finance organisations, published numerous policy papers and books on key international macro-economic issues and is regularly cited as an authority in
