Dollar regaining a foothold?

After 7 years of being in the dump - the dollar is making a bit of a resurgence.

The value of the greenback has only been down once since the month of August began. And in that same period the dollar has risen 4 percent against a basket of the world's major currencies.

The sentiment has definitely shifted in the dollar's favor, but not because of what's happening in the U.S, says Win Thin, senior currency strategist at Brown Brothers Harriman. but rather, what's happening in Britain and the rest of Europe.

SOUNDBITE: Win Thin, senior currency strategist, Brown Brothers Harriman (English) saying:

"For a long time it looked like everything was in favor of the euro zone to the detriment of the U.S. and now we are seeing, you know, the U.S. is kind of surviving its crisis. It's not going to grow back to trend for a couple of quarters, but gee, the outlook for the euro zone is even worse."

Investors have responded by pushing the euro to a six-month low against the dollar. It now only takes $1.49 to buy one euro. That's down from the record above $1.60 set earlier this summer.

The dollar did see a minor pullback on Tuesday, but that is to be expected, Win says.

SOUNDBITE: Win Thin, senior currency strategist, Brown Brothers Harriman (English) saying:

"So we may see some profit taking. We may poke back-up above $1.50 for the euro. But I think that just presents a very good dollar buying opportunity. Again the market has been buying dollars on the dips and I think that will continue. So strong dollar. Period."

That strength, however, is a mixed blessing. On the positive side: a stronger dollar is one of the reasons crude oil prices have dropped $34 from their all time high. But as the dollar flexes its muscles at the same time other economies falter - America could lose what some say has been keeping an economic recession at bay - strong exports.

Conway Gittens, Reuters.