Hedge-Fund Bears Risk Being Burned by Resilient Aussie Dollar

Hedge-Fund Bears Risk Being Burned by Resilient Aussie Dollar

Hedge funds are in danger of losing money on their bearish Australian dollar positions as a lot of the negative news may already be in the currency’s price.

Hedge funds at risk of losses as Aussie dollar defies expectations

Hedge funds with bearish positions on the Australian dollar are facing potential losses as the currency shows resilience despite negative market sentiment, according to a report by Bloomberg citing RBC Capital Markets and Westpac Banking Corp. Many of the anticipated risks, including fears of US tariffs, may already be priced into the Aussie, which is now benefiting from a shift in market conditions, according to Westpac’s Head of Foreign Exchan…