August 14, 2005

NO ONE WHO UNDERSTANDS AMERICA DID:

Dollar rebound delivers costly shock to investors (Steve Johnson, 8/14/05, London Sun)

"The whole world expected the dollar to go down [in January], but there was no one left to sell the dollar," said James Binny, director of FX analytics and risk advisory at ABN Amro.

Berkshire Hathaway, the investment group run by Warren Buffett, has been a high-profile victim of the dollar's fightback.

Berkshire's $21.5bn of short-dollar forward contracts produced a pre-tax loss of $926m in the first half of 2005, eating into the $2bn gains made from shorting the dollar in the previous three years.

Posted by Orrin Judd at August 14, 2005 11:23 AM
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