Currencies
Citi Says Hedge Funds Are Using Dollars for New Carry Trades
- Positioning shift comes after pullback in short yen wagers
- Citi’s macro volatility gauge returns to neutral after spike
The greenback is trading at its lowest since March and hedge funds have been using it since Aug. 5 to buy emerging-market currencies.
Photographer: Yuri Cortez/AFP/Getty ImagesThis article is for subscribers only.
Citigroup Inc. says the carry trade is back, but with a key difference: hedge funds are borrowing US dollars rather than the yen for their wagers on emerging markets.
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