Column: King dollar delivers hedge funds’ best FX quarter since 2017
Woman holds U.S. dollar banknotes in front of Euro banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration
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ORLANDO, Fla., July 11 (Reuters) – Hedge funds had a torrid second quarter, but their faith in the dollar paid off spectacularly.
Industry data provider HFR’s Currency Index, part of the broader Macro (Total) Index, rose 1.76% in June, the biggest monthly rise since March 2020, which brought the April-June increase up to 5.70%.
That was the best quarter since a 5.72% surge in the same period in 2017.
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Or put another way, currency strategies tracked by HFR essentially just had their joint-best quarter since the index was launched in 2008. Central to that was funds’ consistent and sizeable long dollar position.
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According to Commodity Futures Trading Commission data, hedge…
