US Dollar Index see biggest gains since 2008 as euro crisis continues

The US Dollar Index, which tracks the US dollar against six major world currencies is seeing it’s biggest gains since 2008 as the euro crisis continues to lead investors back into the world’s most popular safe haven currency.

The dollar’s longest string of gains since 2008 came late last week, as investors sought safety amid worries about the health of Spain’s banks as well as Greece’s potential exit from the euro zone.

Latest Dollar Index Rate

The ICE US Dollar Index, which tracks the US dollar against six major world currencies closed Friday’s trading session at 80.435.

The forecast for next week remains positive for the dollar after the euro slid to a 3-1/2-month low in volatile trade on Friday. The euro has dropped against the dollar in eight of 10 sessions for a cumulative 2.4 percent decline, hit by the turmoil in Greece.

Greece Talks Prove Futile

Critical last ditch talks to form a coalition government in crisis-struck Greece floundered once more today, leading the country one step closer to new elections, although the socialist party leader said he retained ‘existing but limited’ optimism for a deal.

If no agreement is reached, Greece will have to hold new elections next month, most likely on June 10th or 17th, adding further pressure on the euro to fall further against major currencies.

More Protests in Spain & UK

Meanwhile, thousands of Spaniards fed up with economic misery and waving banners against bankers marched on Saturday to mark the first anniversary of the grassroots “Indignados” movement that has sparked similar protests around the world.

Up to 600 people denouncing the Bank of England rallied in London and a witness said scuffles broke out between some demonstrators and police, with at least 12 arrests.

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US Dollar Index see biggest gains since 2008 as euro crisis continues