Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Citigroup Says Add Krona and Reduce Loonie in Model Portfolio

March 22 (Bloomberg) -- Citigroup Inc. urged its clients to increase wagers that the Swedish krona will strengthen and decrease bets the Canadian dollar will rise.

The firm’s overlay portfolio, made up of the currencies of Group of 10 nations, is not traded and only represents the “best idea of how to be positioned in the market,” Greg Anderson, a senior currency strategist at Citigroup in New York, said in a telephone interview. Five percent of the portfolio was adjusted. The overweight position on the krona increased to 15 percent from 10 percent of the portfolio’s holdings, while the position on the Canadian dollar decreased to 5 percent from 10 percent.

“The Swedish currency is lagging a little bit, particularly relative to its European peers,” Anderson said. “Canada is trading so close to the strong end of its recent range we felt it was the right place to lighten up.”

Canada’s currency, known as the loonie for the image of the waterfowl on its C$1 coin, has lost 0.9 percent over the past week against the nine other developed nations that make up the G-10, according to Bloomberg Correlation Weighted Currency Indexes. The krona rose 0.2 percent.

Citigroup also holds long positions on the currencies of the U.S., Norway, Australia and New Zealand, and short positions on the euro, the yen, the Swiss franc and sterling. A short position is a bet that an asset will decline in value, a long is a bet it will increase.

The portfolio lost 0.3 percent last week and is up 0.4 percent this year, Citigroup said.

To contact the reporter on this story: Austen Sherman in New York at asherman18@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.