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Walking Back Bernanke Wished on Too Much Information

Hedge funds and other speculators dumped more than $14 billion of bullish dollar bets before the Federal Reserve signaled it would pare stimulus, leaving them on the wrong side of a central bank trying to improve transparency.

Futures traders reduced wagers that the dollar would rally against the pound, yen and six other currencies by the most since 2006 in the week ending June 18, according to Commodity Futures Trading Commission data compiled by Nomura Holdings Inc. Fed Chairman Ben S. Bernanke’s comments on quantitative easing at a press conference the following day spurred the Dollar Index to its biggest gains in almost a year.