Hedge funds and large speculators are abandoning bets on a
stronger dollar at the fastest pace ever amid growing confidence in the global
economy Bolomberg/Businessweek tells us.
Futures contracts favoring gains in the U.S. currency surged
to the most on record in June as growth faltered and investors retreated from
risky assets. Now, hedge funds are reversing those bets as central banks from
China to the U.S. vow to stimulate their economies, prompting money managers to
seek higher returns from Sweden to Australia.
Traders have less need for the relative safety of assets
denominated in dollars as the cost of insuring sovereign bonds for Group of 10
and other nations tumbles to the lowest level in a year and stocks reach the
highest since 2008. Sweden’s krona, backed by interest rates about six times
those in the U.S., rose more than any other major currency in the past month.
The dollar and the yen, havens in periods of turmoil, declined the most….
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