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Marc Faber: I Am Long the Dollar Wednesday, November 4, 2009 11:43 AM By: Gene J. Koprowski Article Font Size   The U.S. dollar may appreciate well over 10 percent against the euro during the next quarter, says Marc Faber, the economist known as “Doctor Doom” to investors. Faber has long predicted the dollar’s complete collapse, so the dollar rally for him is an interesting turn of events. “Maybe the dollar has made a turn; it can easily rebound by 10 percent,” Faber told Bloomberg News. “It may have started already since the asset markets started to go down 10 days ago.” Faber, the editor and publisher of the Gloom, Boom & Doom report, observed that the dollar rallied to its highest level versus the euro in a month yesterday in the currency markets. The rise came on rumors that Federal Reserve policy makers are discussing the outlook for record-low borrowing costs. But, the greenback has dropped 12 percent during the past year against a basket of six major currencies as the Fed, trimmed interest rates to near zero in an effort to power the U.S. economy out of the recession. “As of today, I will be long in dollars,” said Faber. “I don’t think that the dollar will be a strong currency, but you can have periods like in 2008 that the liquidity tightens. If you have the private sector withdrawing credit and the government throwing credit at the system you can get a lot of volatility.” Faber said he would be careful buying equities now as “we are in a correction period.” Other economic experts agree, in part. New York University professor Nouriel Roubini is saying the dollar will eventually “bottom out” as the Fed raises borrowing costs and withdraws stimulus measures, Bloomberg News reports.