NEW YORK: There are dollar bears, and then there's Ulf Lindahl.
Hedge fund bets against the dollar in futures markets are at their highest level in about a decade, according to data from the Commodity Futures Trading Commission, while 36per cent of fund managers in a recent Bank of America Global Research survey named shorting the dollar as their top currency trade for the second half of the year.https://fingfx.thomsonreuters.com/gfx/mkt/nmovaqmqkva/Pastedper cent20imageper cent201597804199719.
Though the dollar's drop has slowed in recent weeks, that's"really an opportunity to get out of the dollar," he said. Analysts at TD Securities said the Federal Reserve’s revamped policy approach to inflation will keep the dollar under pressure, as it suggests interest rates will stay lower for longer. The greenback is about 10per cent overvalued against other major currencies, they said.
U.S. investors holding foreign assets are also less apt to buy protection against dollar spikes when the currency is expected to remain weak, potentially increasing the profitability of their trades. Nearly half the respondents in the BofA survey said they expect global U.S. dollar reserves to decrease during the next year.
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