This opinion
was expressed by an analyst at MUFG Bank
The dollar may continue to rally as
concerns over sharp fluctuations in stock prices will boost demand for safe
assets, which could prompt short-sellers to liquidate rates against the US
currency, MUFG Bank reported.
“The US dollar is strengthening again
today, and with dollar short positions currently significant, more explicit
short liquidation is highly possible,” says MUFG's Derek Halfpenny.
Stocks have taken off sharply in
recent days, fuelled by struggles between US retail investors and hedge funds
for short stocks. The dollar index rose 0.1% to 90.5770.
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