Bank of America reported that investors sold the US dollar broadly last week, influenced by slightly positive economic indicators from the United States. The move came in response to somewhat encouraging US inflation data and lower-than-expected retail sales numbers.
According to Bank of America, the US dollar sell-off has been widespread, with real money investors now holding a slightly short position on the currency. Despite this trend, hedge funds' long positions in the US dollar remain close to the highest levels seen in the past five years.
In foreign exchange markets, the Australian Dollar (AUD) has seen increased interest, as investors continue to build their long positions. Conversely, short positions in the Swedish Krona (SEK) and New Zealand Dollar (NZD) saw a slight decline.
Emerging market currencies have also attracted attention, with buying activity particularly focused on regions such as Europe, the Middle East and Africa (EMEA), as well as Asia. The Turkish Lira (TRY) has been in the spotlight as a currency as hedge funds and emerging market investors increased buying across the board.
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