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Dollar Will Climb as Global Economy Resumes Slump, Taylor Says
The U.S. dollar will strengthen when the global economy slips back into recession, according to John Taylor, who oversees $7.5 billion at FX Concepts LLC, manager of the world’s largest currency hedge fund. “The dollar will be weak, but only for another couple of weeks -- then it’s going to turn around,” Taylor, 67, said in a Bloomberg Television interview. Because most global debt is dollar-denominated, when economic conditions weaken and U.S. banks cut back on lending, international banks scramble for the greenback and boost its value, he said. “The catalyst for the turnaround is things get much worse,” ... (full story)