"There are indications that the U.S. dollar is now serving as the funding currency for carry...

|By:, SA News Editor

"There are indications that the U.S. dollar is now serving as the funding currency for carry trades," IMF says in a recent report (.pdf). "These trades may be contributing to upward pressure on the euro and some emerging-economy currencies." While the dollar "has moved closer to medium-run equilibrium," it is still "on the strong side."