On Oct 25, 2008, at 6:12 PM, Marvin Gandall wrote:
> The liquidation of hedge fund holdings, mainly forced by margin
> calls, has
> driven the market down, and I can see where the dollar would be
> boosted
> where they have been dumping foreign securities. But I don't see how
> the
> carry trade figures in the dollar rise
The dollar has been a low-yielding currency - much lower than the euro or sterling or the non-US dollars. So non-dollar positions are being liquidated and plowed into dollar posish's.
Doug