Dollar Rout Built on Sand for Investors in It for Long Haul
- Recent sell-off was mainly driven by short-term players: UBS
- Bloomberg Dollar Spot Index has bounced off a three-month low
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Even as the dollar heads for a quarterly decline, long-term investors seem skeptical of the sell-off.
They pared their bullish bets on the greenback, but they refrained from switching to all-out bears, according to Neil Jones, head of foreign-exchange sales to financial institutions at Mizuho Bank. It’s an entirely different matter for short-term investors, who drove down bets for dollar strength materially in May, said Adrian Boehler, global head foreign-exchange sales at UBS Group AG.