Stocks shunned for safety of US dollar

SINGAPORE - The dollar was the best place for investors to be in November, beating returns on worldwide bonds, commodities and stocks as Europe's debt crisis threatened to derail global growth.

The Dollar Index tracking the US currency against six foreign-exchange peers rose 2.9 percent last month, leaving it down less than 1 percent for the year. Even as Treasuries gained 0.7 percent, fixed-income securities around the world lost 0.5 percent, Bank of America Merrill Lynch index data show. The Standard & Poor's GSCI Total Return Index of commodities rose 1.4 percent, and the MSCI All Country World Index of shares fell 2.9 percent with dividends.

"There's been a flight to quality, which means investors are keeping their money in US dollars and Treasuries," said Sean Callow, a Sydney-based senior currency strategist at Westpac Banking Corp. "The US hasn't been a bad bet, whether you're on the safe-haven side or you see signs of life in the economy," he said in a phone interview on Tuesday.