The Australian and New Zealand dollars fell against most of their major counterparts after a report signaled manufacturing slowed more than estimated in China, the biggest trading partner of both nations.
Merk Investments LLC cut the euro position of its Hard Currency Fund to 14 percent, the lowest in the fund’s six-year history, citing the need for more banking system support in Europe amid the region’s crisis.
As nervous investors flee the euro and other currencies for the relative safety of the greenback, it's tough to be a dollar bear. Axel Merk, who has been managing money for currency and gold investors since 1994, isn't about to change his downbeat view on the dollar, though. It's a view that, combined with a liking for gold, has benefited shareholders in his Merk Hard Currency Fund, which aims to profit from a rise in hard currencies against the U.S. dollar. (The "hard" refers to stable currencies from nations with economic and political resilience -- so, generally developed nation currencies.)
The Australian and New Zealand dollars, this year’s best-performing currencies among developed economies, are reducing their links with stocks and commodities as investors search for faster growth and higher interest rates.
The turmoil in the euro zone from the Greek debt crisis won’t spur appreciation of the dollar because of Federal Reserve policy, according to Axel Merk, president and chief investment officer at Merk Investments LLC.