One-Way Dollar Wagers Losing Allure for Strategists: Currencies
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The easy money made in 2014 from wagering on the dollar’s appreciation against the euro and yen is over, compelling traders to dig deeper for bargains as the greenback’s advance moderates.
After soaring 13 percent last year, the U.S. Dollar Index will only rise another 3.5 percent in 2015, according to more than a dozen strategists surveyed by Bloomberg. Bank of America Corp.’s top pick for this year in terms of risk-reward payoff is buying the U.S. currency against its Australian namesake, while Goldman Sachs Group Inc. says the dollar will gain versus a basket of South Africa’s rand and Hungary’s forint, as well as against the euro.