A shock fall within the greenback dented a preferred forex commerce infamous in previous many years for wiping out hedge funds and fueling broad market selloffs.
Traders say hedge funds and different gamers collected huge bets generally known as carry trades in current months. These investments contain borrowing currencies with ultralow rates of interest, particularly the Japanese yen and to a lesser extent the euro, and plowing the cash into currencies the place many count on charges to rise, such because the greenback.
