Does a weak/dead Euro make the Dollar stronger?
People in other nations of the world have been long accustomed to dealing with other currencies, exchange rates and economic difficulties. When theirs is headed into trouble, a surprising number will look for an offshore account denominated in another currency deemed “safe” at that time. Argentinians fled their peso for dollars during their crisis, Europeans have been going to Swiss Francs and dollars more recently.
It does strengthen the currency, usually a temporary effect as the crisis passes and the safe haven currency is exchanged for the native currency once again. You see it in times of instability, usually hand in hand with spikes in the price of precious metals, which rise for the same reason and often decline for the same reason.
Larry Kudlow ought to have a very interesting radio show tonight.