There are rumours going around that billionaire investor George Soros is shorting the Australian dollar, which fell in late local trade, according to Mark Hawthorn at Fairfax.
Hawthorn reports the dollar slipped as traders reacted to so-far unconfirmed rumours that Soros was shorting the dollar ahead of the Reserve Bank’s rate cut announcement.
A large number trades against the dollar totalling $US1 billion were placed via Hong Kong and Singapore late yesterday, which Fairfax believes to be made by Soros Fund Management.
It dropped from $US1.0284 in late local trade to $US1.0253 in offshore trade.
Commonwealth bank chief currency strategist and and head of international economics Richard Grace told Business Insider this morning that he had not heard the Soros rumor.
“We have clients shorting the Australian dollar all the time, I don’t think its [the dollar’s movement] anything out of the ordinary,” he said.
Recently Soros’ obituary was prematurely released by Reuters. Among the phrases used to personify the Hungarian-American mega-investor were “predatory,” and “hugely successful.”
He is known as “the man who broke the Bank of England” for shorting the British Pound in 1992, and has been accused of helping to trigger the Asian financial crisis in 1997 by short-selling the Thai Baht and the Malaysian Ringgit.