Interest In Currencies Grows Among U.S. Institutional Investors

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Five years ago, the average U.S. investor had a limited knowledge of the foreign exchange markets. But today, as media coverage of foreign markets burgeons, investors are becoming more aware of the need to hedge against exchange-rate risk.

Galvanized by last fall's widely publicized turmoil in the European Exchange Rate Mechanism (ERM), institutional investors are paying more attention to currency fluctuations, say currency fund managers.

As foreign securities continue to grow as a proportion of

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