Hedge Funds Rebuild Euro Bear Bets on Greek Exit Banks Weigh
By Liz Capo McCormick and Lukanyo Mnyanda -
May 21, 2012 6:19 AM GMT-0300
The euro has weathered the worst financial crisis since the Great Depression, bailouts of Greece, Ireland and Portugal, and falling interest rates. Now, investors are betting like never before that a Greek exit would be too much to keep the 17-nation currency above its long-term average.
Hedge funds and other large speculators, which pared trades that would profit from a drop in the euro to the lowest levels since November, rebuilt them to a record high last week, figures released May 18 by the Washington-based Commodity Futures Trading Commission showed. The premium for options that grant the right to sell the euro has more than doubled since March.
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Comment: Watch out when the massacre won't be the euro, but the euro shorties.
Hedge funds and other large speculators, which pared trades that would profit from a drop in the euro to the lowest levels since November, rebuilt them to a record high last week, figures released May 18 by the Washington-based Commodity Futures Trading Commission showed. The premium for options that grant the right to sell the euro has more than doubled since March.
More
Comment: Watch out when the massacre won't be the euro, but the euro shorties.
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