London
FOREIGN exchange managers who sold currencies as they became overvalued beat both trend seekers and traders analysing interest-rate differentials this year, the first time that they have won out against these strategies since 2005.
An unprecedented flood of cash from central banks in the US and Europe to Japan has driven currency levels to extremes, pushing Deutsche Bank AG's Valuation Excess Returns Index, which tracks tenders relative to purchasing power, up by 4.9 per cent in 2013. That compares with a 3.6 per cent increase for the bank's Momentum Index, which tracks currencies moving faster than average, and a 2.4 per cent loss for its gauge of the interest-rate-driven carry trade.
"Anyone...
Keyword added to your list