Fed Rewarding Top Traders’ Faith in U.S. Dollar
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By sparking a dollar rally over the past week, the Federal Reserve has saved the smart money in the $5.3 trillion-a-day foreign-exchange market from its first monthly loss since June.
A Parker Global Strategies LLC index tracking 14 top currency funds has jumped 1.6 percent since Oct. 28, a day before U.S. central bankers said they may raise interest rates sooner than anticipated if the jobs market keeps improving. Both that measure and the Bloomberg Dollar Spot Index, which rose to a 5 1/2-year high yesterday, had been poised to end a three-month winning streak until boosted by the Fed’s optimism over the economy.