Dollar Shorts Mount Before Yellen Outlines Market-Based Policy
- Bets against greenback rise despite latest rally against peers
- Low rates and economic recovery to damp currency, Goldman says
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Investors may take Janet Yellen’s expected endorsement of a market-driven exchange rate as an additional green light for the U.S. currency’s long-term downtrend.
The U.S. Treasury Secretary-designate will affirm the U.S.’s commitment to a market-determined dollar value on Tuesday, the Wall Street Journal reported. The comments could fuel speculation authorities will not object to a softer greenback, which earlier this month fell to a two-year low against its major peers.