SOURCE: Rydex Investments

March 11, 2008 14:20 ET

Rydex Investments Introduces Institutional Currency Commentary to CurrencyShares(SM) Web Site

Declining Dollar Environment Fuels Investor Interest in Currency as an Asset Class

ROCKVILLE, MD--(Marketwire - March 11, 2008) - Rydex Investments -- the firm that introduced the first currency-based exchange traded product -- today announced the availability of online commentary to help educate investors about the dynamics of currency as an asset class. now features weekly commentary from Foreign Exchange Analytics (FXA), which can be found under the web site's "Research and Tools" option. The new commentary provides institutional insight into the world's major currencies, including the Australian dollar, British pound sterling, Canadian dollar, euro, Japanese yen, Mexican peso, Swedish krona, Swiss franc and U.S. dollar.

"Currency represents one of the largest and most liquid asset classes, averaging more than $3.2 trillion in daily turnover(1)," says David Reilly, director of portfolio strategy at Rydex Investments. "As investors seek access to assets that have low correlation to stocks and bonds, the industry is beginning to recognize currency's potential as a portfolio diversifier."

Currency has historically shown a low correlation(2) to traditional stock and bond asset classes. When compared to the U.S. Dollar Index® (USDX), the S&P® 500 Index had a correlation of 0.04 and the Lehman Brothers Aggregate Bond® Index had a correlation of -0.18 from 1992 through 2007(3).

"In addition to potential diversification benefits, currency as an asset class may offer investors an opportunity to capitalize on the cyclical nature of currency valuations," says Reilly. "We've seen that currency movements tend to follow longer-term trends over time, allowing investors the opportunity to get comfortable with the direction of the dollar versus other currencies, and vice-versa."

According to FXA commentary, as of March 10, 2008, the U.S. dollar continues to wilt under pressure from the credit market crisis, weak U.S. economic data and comments from Federal Reserve officials hinting at future rate cuts. The USDX posted a record low last week, ending down 0.9%.(4) For additional institutional currency commentary, visit

Rydex Investments offers a suite of eight currency-based exchange traded products with more than $3 billion in assets under management.

Past Performance is no guarantee of future results.

(1) Source: Triennial Central Bank Survey: Foreign exchange and derivatives market activity in 2007.

(2) Correlation is a measure between -1 and 1, which indicates the linear relationship between two variables. If there is no relationship between two variables, the correlation coefficient is zero. If there is a perfect relationship, the correlation is 1. And if there is a perfect inverse relationship, the correlation is -1.

(3) Source: Bloomberg January 2008.

(4) All currency commentary and data have been prepared by Foreign Exchange Analytics (FXA). The opinions and forecasts expressed on the currency commentary section of the web site are as of March 10, 2008, are solely those of FXA, and in no way represent the advice, opinion or recommendations of Rydex Investments, its affiliates or related companies. Although Rydex Investments believes the information from FXA is reliable, because of the possibility of human or mechanical error, Rydex Investments cannot, and does not, guarantee or warrant the accuracy, adequacy, completeness or suitability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Nothing contained within the commentary section of the web site or within this press release should be construed as a solicitation to buy or sell any securities. This information is subject to change at any time, based on market conditions. FXA and Rydex Investments are not affiliated.

For more complete information regarding Rydex funds, call 877.RYDEX34 or visit for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund's prospectus contains this and other information about the fund. Please read the prospectus carefully before you invest or send money.

Currency investing may not be suitable for all investors. Currency markets can be extremely volatile, resulting in fluctuations in the price of the currency which could materially and adversely affect the value of an investment. There are several factors which can increase the volatility of a foreign currency, including, but not limited to: national debt levels and trade deficits; domestic and foreign inflation and interest rates; investors' expectations concerning inflation and interest rates; and global and regional political, economic or financial events and situations. Before making an investment decision, investors should consult their financial professional regarding the risks and other factors involved in currency investing.

The U.S. Dollar Index® is a market-weighted basket of six foreign currencies that is commonly used to track price movements in foreign currencies. Utilizing exchange rates expressed in units of foreign currency per U.S. dollar, the six currencies include the euro, Japanese yen, British pound sterling, Canadian dollar, Swedish krona and Swiss franc. The S&P 500® is a capitalization-weighted index of 500 U.S. stocks and is widely used as a diversified proxy for the U.S. stock market. The Lehman Aggregate Bond® Index, a common measure of the performance of investment grade bonds, is comprised of approximately 6,000 publicly traded bonds, including U.S. government, mortgage-backed, corporate and Yankee bonds with an approximate average maturity of 10 years. Referenced indices are not available for direct investment.

CurrencyShares is a service mark of Rydex Investments and is protected by copyright.

Rydex Distributors, Inc., an affiliate of Rydex Investments, is the distributor of Rydex funds.

About Rydex

Rydex Investments continues to drive change in the financial industry by introducing investment products and services that challenge conventional thinking, empower investors and provide essential new options for uncertain market conditions. Rydex manages approximately $15 billion in assets via nearly 100 mutual funds and exchange traded products.

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