FX Markets

Funds increase FX activity

MARKET NEWS

LONDON -- In the weeks following September 11, volumes in the FX markets have gradually returned to near-normal levels, but liquidity is not coming from its usual sources of cross-border flows and corporate activity, market participants told FX Week.

There has been a marked increase in hedge fund activity, with speculative players taking the lead, analysts said. "Hedge funds have certainly increased in recent years, and right now speculative funds are dominating FX trade," Will Rugg, senior

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