Dollar Set for Biggest Gain Versus the Yen Since 1979

Bloomberg reports:

The dollar, buoyed by speculation the Federal Reserve will keep raising interest rates, is on the verge of its biggest annual gain against the yen since 1979.

Fifty-eight percent of the 57 traders, strategists and investors surveyed on Dec. 2 from Sydney to New York recommended buying the dollar against the yen. A majority also said investors should purchase the U.S. currency versus the euro.

The dollar advanced 18 percent this year against the yen and 16 percent versus the euro as the Fed lifted its interest- rate target seven times to 4 percent and showed no sign of stopping.

The wacky world of fiat currencies.The dollar may be doing less worse than the other alternatives.With gold hitting $500 an ounce, we wonder if the confidence in the dollar as the world's reserve currency is what it was 10 years ago.