The U.S. dollar has jumped compared to other currencies around the world in recent weeks and may tempt investors to buy shares in an exchange-traded fund (ETF) that tracks the greenback. 

The PowerShares DB US Dollar Index Bullish Fund (NYSE:UUP) is an ETF that allows investors to gain exposure to the U.S. dollar without engaging directly in foreign exchange accounts. A key question is whether the recent rise in the value of the U.S. dollar is sustainable as a long-term trend or if it is a short-term opportunity that may be best suited for traders seeking to seize quick profits. 

An improving U.S. economy that started last year, compared to recent slowing of foreign economies, adds further lift to the dollar. The dollar also climbed when the U.S. unemployment rate fell to a nearly 18-year low during April, as U.S. job growth totaled 164,000 new positions and the unemployment rate slid to 3.9 percent for the first time since December 2000.

In comparison, the U.S. unemployment rate dipped from 4.1 percent, where it had leveled off for the previous six months. Although U.S. economic growth eased slightly to 2.3 percent in the first quarter of 2018, it held up reasonably well amid talk of imposing trade tariffs by President Trump and foreign leaders. Forecasters expect annualized U.S. economic growth to approach 3 percent for the rest of 2018, up slightly from the 2.9 percent annualized rise in the fourth quarter of 2017. To read the rest of Paul’s weekly investment column, please click here.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce,Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz.