Hedge Funds Warn That Shorting Dollars Is Now a Crowded Trade

  • Leveraged funds went long on euro first time in two years
  • August tends to mark start of seasonal flows backing dollar
Dollar Is Near 'Something of a Floor,' Says Cecchini
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Betting against the dollar is looking increasingly like a crowded trade that’s due for a squeeze, some hedge funds say.

BlueBay Asset Management, which oversees more than $60 billion, has taken profit on short dollar positions, while AMP Capital Ltd. pared its bullish bets on emerging-market currencies. K2 Asset Management Ltd. is taking risks off the table partly on concern over a sudden bounce in the world’s reserve currency.