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>How can one participate in making profits during a "dollar short squeeze"?

If you believe OP, borrow as much foreign currency as you can and exchange it for USD. Back in 2007-2008, many Canadians emptied out their savings to buy USD at incredibly favorable exchange rates. Within a year or two they made over 30% as the CAD fell and the USD recovered.

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Thats an interesting narrative about the CAD/USD exchange rate. Conventional wisdom would have said that it was that the high prices of oil raised the canadian dollar compared to the us dollar. If at the time you thought the price of oil would come back down then it would be an opportune time to sell canadian dollars and hold USD.

In your comment it seems that you are suggesting there was some kind of squeeze from retail holders that caused the price rise in CAD to USD... I find that tough to believe but have not considered it.

It was the 2007/2008 Financial meltdown where US Real Estate and Leman brothers collapse. Oil went crazy (Tar Sands) and Canada was able to weather virtually unscathed (due to strict mortgage and banking rules. The CAD went from trading at like .81 USD to 1.18 USD withing a year (if memory serves me correctly).

Yes, you can find a new Afghan Afghani, Indian Rupee, Turkish Lyra, or Chinese Yuan to borrow and buy USD with.

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