Hedge Funds Abandoning Dollar's Biggest Bull Run in a Generation
- Greenback drop to 9-month low follows worst quarter since 2010
- Fed fueling weakness as rate-increase expectations dissipate
U.S. one-hundred dollar bills are arranged for a photograph in Hong Kong, China, on Monday, July 20, 2015. The yuan has proven to be among the more resilient emerging-market currencies this year, having fallen less than 0.1 percent versus the dollar as China cut interest rates and the U.S. prepared to raise.
Photographer: Xaume Olleros/BloombergHedge funds are close to calling it quits on the dollar’s best run in a generation.
Large speculators cut net bullish positions on the greenback to the lowest in almost two years last week. If they keep trimming at the current pace, those bets will be wiped out entirely by the end of the month. Currency options are signaling a less than one-in-four chance the greenback will extend its two-year, 25 percent surge against the euro in 2016, while against the yen the likelihood is less than one in 10.