A sharp pull-back in the value of the dollar versus a basket of other currencies late last week has failed to dent support for the greenback, and managers expect to see gains as the US continues to recover.
The dollar index which tracks the currency against a basket of other major currencies fell 2.7% overnight on Wednesday. The slide was prompted by comments from Fed Chairman Ben Bernanke indicating loose monetary policy will remain in place for now. The news halted the moves in FX trades such as the cable trade (GBP/USD), which had seen the pound fall below $1.49 just days before, with sterling strengthening to $1.5085 on Thursday. But currency and bond managers said the overwhelming trend for now is further dollar strength. Mike Riddell (pictured), running the M&G International Sovere...
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