The more the storm clouds gather over the world economy, the stronger the sun shines on the dollar. As the carry trade collapses and investors rush to the save haven of the US dollar, the misery that dollar-holders have suffered over the past several years looks like it will end Hong Kong professionals at least, those that keep their jobs will see some increase in their buyer power, eroded by years of dollar weakness.
ôThe high level of risk aversion today is supportive of the dollar. Risky carry trades are out, and repatriation to the US by US investors, for example, is in,ö states Dwyfor Evans, a currency specialist at State Street in Hong Kong....
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