Economics
Managers of $3 Trillion Buy Dollar Amid Worst Rout in Decade
- Slump ‘overdone’ as Fed hike seen, State Street Global says
- Options signal growing demand to buy greenback versus yen
Dollar Rises and Yen Declines in Fed Decision
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The dollar has been mired in its worst slump in a decade, battered by political drama in Washington and shifting bets on central-bank policy. Managers of $3 trillion say the carnage has gone on long enough.
Mellon Capital Management Corp., State Street Global Advisors and UBS Asset Management are wagering that the greenback will recoup some of its 9 percent slide in 2017 as traders embrace a scenario that was all but written off a few weeks ago: a December rate hike by the Federal Reserve. That view gained traction Wednesday after policy makers stuck to their forecast for another increase this year. The dollar surged on the announcement.