The big trend in the foreign exchange market over the last six months has been the weakness of the dollar, but it is unlikely to fall further, according to hedge fund managers.
This poses a danger to many managers who – being long yen and short the dollar – could get hurt if the dollar were to move up sharply.
The weak dollar is mainly due to deficits that the US is running and is not a sign that Washington has abandoned a strong dollar policy, according to Paul Phelan, principal of Quay
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