Dollar Turning Point Aided by U.S. Investor Reversal: Currencies
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U.S. money managers are reversing a decade-long trend of diversifying away from the dollar, leading more strategists to conclude that a rally that’s taken the currency to a four-year high is just getting started.
Investors based in the U.S. hold 19.3 percent of their $35.8 trillion of equities in foreign shares, down from a peak of 21.1 percent in 2009, according to new Federal Reserve data tracked through June by UBS AG. After surging from 8.3 percent in 2003, the proportion of their $11.4 billion of bonds, excluding Treasuries, that is in foreign debt has stabilized at 20.9 percent.