'Sun Worldwide' – Dollar Is On Borrowed Time.

USA, 12/11/2008

"Sun Worldwide" – The return of risk appetite may see the US dollar decline sharply.
Asian-based asset management firm, Sun Worldwide, believe that the recent rally in the strength of the US dollar may be coming to an end as investors rediscover their appetite for risk and diversify out of the so-called safety of the world’s reserve currency.

Sun Worldwide apparently feel that any forced-selling of equities and commodities is largely coming to an end as the US government continues to announce new bailouts and rescue packages aimed at easing the tight credit markets and saving too-large-to-fail institutions from collapse.

Nevertheless, sources close to Sun Worldwide suggest that its technical analysis teams have refused to rule out a final surge in the currency’s strength before the end of the year.

The US dollar has surged largely because of the widespread deleveraging by hedge funds and client redemptions. Sun Worldwide believe that this process is nearly over and that there is a huge amount of cash waiting to return to equity and commodity markets.