Since the Euro's existence, it has been debated by analysts that the U.S. Dollar is losing its place as the only reserve currency in the world. In other words, the age of U.S. Dollar hegemony was coming to an end. Central Banks such as Bank of Russia have started diversifying into reserve currencies other than the U.S. Dollar, most recently theAustralian Dollar. This is the effect of a global sentiment that the U.S. Dollar outlook is extremely bearish. A number of factors including low interest rates, a weakening U.S. economy, a perceived shift to emerging markets by multinational corporations, a rising China and India, and other factors, make the U.S. Dollar look weak-- especially with new choices such as the Euro (FXE), Chinese Renmimbi, and others.
http://seekingalpha.com/article/782881-uup-u-s-dollar-long-term-buy-of-2012
http://www.reddit.com/r/finance/comments/y1x8a/uup_us_dollar_longterm_buy_of_2012_seeking_alpha/
