Futures Markets: Foreign Currencies Soar on Speculation Dollar Has Peaked
Foreign-currency futures soared in the strongest rally since 1984 began, amid continuing speculation that the dollar may have peaked.</br></br>Futures analysts and traders, who have failed repeatedly during the past year to profit on the dollar's long-awaited decline, were cautious in making predictions.</br></br>"They don't know whether or not this is it. But just in case it is, they're buying," said Jill Cotter, currency analyst with Prudential Bache Securities. "If the dollar is going to crash, they don't want to sit there twiddling their thumbs."</br></br>The dollar's weakness boosted grain and soybean futures yesterday in expectation that it might aid U.S. farm exports. Precious metals also rose.</br></br>Foreign investors increasingly are shifting their money into strengthening foreign stock markets, especially in West Germany. "There's a perception that our stock market has become weak, and there's been a shift in capital flow," said Richard Kapsch, floor manager for E.F. Hutton & Co. at the Chicago Mercantile Exchange's International Monetary Market.