Hedge Funds Rethinking their Bets on Dollars

June 16, 2016 James Heinsman Economic Barometer

As we arrive at the end of 2016’s second quarter some hedge funds are rethinking their positions on the direction of the US dollar. The early days of the year brought precipitous falls in the value of the dollar, sending many investors to unload their stakes in greenbacks.

Recent data have shown a serious sea-change in investor confidence in US currency, with bullish bets by macro hedge funds. Funds with both long and short term strategies which are based on broad economic or political expectations on individual countries have increased their bets to the highest level since early February this year.

Investment on continued improvement of the strength of the dollar has risen by about $12 billion, says the Commodity Futures Trading Commission.

“The medium- to longer-term dollar trend is still likely higher, particularly against other developed currencies, as opposed to many of the [emerging-markets currencies], which have already been beaten to a pulp,” said Philip Simotas, chief operating officer at ROW Asset Management.

Philip Simotas, ROW Asset Mangement, US dollar,

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