Tags: currency | funds | Fed | stimulus

Currency Funds Lost 1 Percent in July as Dollar Dropped, Parker Says

Thursday, 29 Aug 2013 01:33 PM

Foreign-exchange funds lost 1 percent in July as the dollar fell amid speculation over when the Federal Reserve may reduce asset purchases, according to Parker Global Strategies LLC.

Among the 39 programs that reported results, performances ranged from a return of about 5.3 percent to a loss of 5.9 percent, the company said in a statement. Ten funds gained money and 29 programs reported a loss.

“During the month, the U.S. dollar experienced significant volatility,” according to Parker, based in Stamford, Connecticut. “Managers noted that Group of 10 central banks’ actions will continue to significantly impact global emerging-market currency markets.”

The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major peers, fell 1.4 percent in July, the biggest decline since June 2012, to 1,025.74. The gauge has risen 0.8 percent to 1,033.81 since then.

Fed policymakers are debating whether the U.S. economy is strong enough to allow them to pare back monthly purchases of $85 billion in Treasurys and mortgage debt, which tend to debase the currency. Officials will reduce the amount at their next meeting on Sept. 17-18, according to 65 percent of economists in an Aug. 9-13 Bloomberg survey.

The Parker FX Index is up 0.5 percent this year and has declined 0.1 percent during the past 12 months. The index includes 42 programs managing about $41 billion by 35 firms worldwide.

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Foreign-exchange funds lost 1 percent in July as the dollar fell amid speculation over when the Federal Reserve may reduce asset purchases, according to Parker Global Strategies LLC.
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2013-33-29
Thursday, 29 Aug 2013 01:33 PM
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