Singapore Family Cuts Dollar Bets Citing Volatile Central Banks

Woodside Holdings Investment Management, a Singapore-based family office, trimmed bets the U.S. dollar will strengthen amid uncertainty as to when the Federal Reserve will start raising interest rates. Woodside cut the percentage of its liquid assets denominated in the greenback to about 75 percent from 80 percent this year, said David Fergusson, who is chief investment officer at the company that was set up by his grandfather in 1959. Traders have set back bets for when U.S. policy makers will raise borrowing costs as officials such as Atlanta Fed President Dennis Lockhart and Fed Bank of Boston President Eric Rosengren said this month policy should stay accommodative. The Swiss National Bank unexpectedly scrapped its currency ceiling in January, while policy makers in Singapore and Japan also surprised the market by boosting stimulus in the past six months The dollar has weakened against all except one of its 16 major counterparts this month and strategists have trimmed forecasts on how much it will gain. The currency will appreciate about 4.6 percent to $1.04 per euro by year-end and 5 percent to 125 yen, according to Bloomberg surveys. The dollar was at $1.0876 per euro and 119.13 yen at 1:30 p.m. in Tokyo.

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