Wall Street Braces for Dollar Demand to Spike at Quarter-End
- Cash hoarding, ‘horrible’ data to keep greenback demand intact
- Equities may see influx of $850 billion amid rebalancing
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It’s taken unprecedented measures from governments and central banks the world over to bring the frenzied rush for dollars under control. A simple matter of calendar dates could help set it off again.
In the coming days, a massive allocation shift will take place as portfolio managers and corporate treasuries gear up for quarter-end, an event which often feeds into greenback strength. The worry on Wall Street is that it threatens to help reignite dollar demand and make the currency’s three-day losing streak through Thursday more of a pause than lasting pullback.