Currency Funds Rose in December Before Cliff Deal, Parker SaysTaylor Tepper
Foreign-exchange funds gained 0.2 percent in December before Congress reached a budget deal on the so-called fiscal cliff, according to Parker Global Strategies LLC.
Among the 43 funds that reported results, the performance ranged from a return of 5.5 percent to a loss of 6.5 percent, the company said today in a news release. Twenty-four funds gained money and 18 reported a loss. The company’s index is down 1.1 percent for the past 12 months.
“In December, political uncertainty and accommodative, pro-growth monetary policies drove foreign exchange market trends,” Parker, based in Stamford, Connecticut, said in the statement. “For the majority of the month, skepticism surrounding U.S. fiscal cliff negotiations dominated headline news. Fortunately, Congress reached a last-minute solution that appeased global investors, but many issues including the debt ceiling still remain.”
Congress broke an impasse to avert the so-called fiscal cliff by passing legislation earlier this month skirting income-tax increases for more than 99 percent of households.
The yen fell against all 16 of its most-traded currencies tracked by Bloomberg in December, while the South African Rand strengthened against all peers. The euro gained against most of its peers and climbed 1.6 percent versus the dollar.
The Parker index includes 47 programs managed by 40 companies managing more than $44 billion.