Stripping out forex

Currency overlay

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Collateral damage from the seizure of credit and funding markets following US subprime problems has roiled foreign exchange markets, with some investors with large international portfolios finding themselves at the mercy of gyrating currencies.

But currency overlay managers say the wave of volatility is a timely wake-up call for investors, as it highlights the vulnerabilities of their returns. They say investors that neglected currency risk saw diluted returns, as the sharp appreciation in some A

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