Carry Traders Reeling From Dollar Surprises Look Elsewhere
Apr 20 2021, 11:42 AM
April 20 2021, 8:35 AM
April 20 2021, 11:42 AM
(Bloomberg) Carry traders blindsided by bouts of dollar strength are looking beyond the currency to fund their bets even if it means giving up some returns.
(Bloomberg) Carry traders blindsided by bouts of dollar strength are looking beyond the currency to fund their bets even if it means giving up some returns.
Borrowing dollars to buy assets in higher-yielding currencies, a usually profitable strategy in emerging markets, proved loss-making in the first quarter as U.S. yields surged. That pushed money managers including Fidelity International and AMP Capital to cut dollar-short positions and fund their arbitrage with euro or yen, given the low interest rates in those currencies.
Apr 19 2021, 9:40 AM
April 19 2021, 3:07 AM
April 19 2021, 9:40 AM
(Bloomberg) Deutsche Bank AG is replacing its global pricing engine for emerging-market currencies in London with one in Singapore, drawn by surging trading in Asia and the increasing importance of the Chinese yuan.
(Bloomberg) Deutsche Bank AG is replacing its global pricing engine for emerging-market currencies in London with one in Singapore, drawn by surging trading in Asia and the increasing importance of the Chinese yuan.
Locating new and more powerful computer hardware in the city-state will help the bank shave vital fractions of seconds from the time it takes to execute orders in the region, according to Singapore-based David Lynne, the chief of fixed income and currency operations in Asia region.
(Bloomberg) Emerging-market investors seem to have a lot going for them right now and the renewed weakness in the U.S. dollar is adding to the bullish mood.
MSCI Inc.
(Bloomberg) Goldman Sachs Group Inc. revised its forecasts for the Turkish currency again, projecting further gains in the near term but warning that “the extent of lira appreciation may be limited.
(Bloomberg) South Korea’s won has the potential to test resistance at its 2018 high after the currency posted the strongest gain in Asia last quarter.
How soon it may get there depends in part on what the central bank says about the rally at its policy meeting in Seoul this week.