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HFs, investors expect ME states to decouple currency from USD

Wall Street Journal sources (5/27), reports Bloomberg, suggest that hedge funds and investors are betting that Saudi Arabia, Qatar, and the UAE will break their currencies’ pegs to the US dollar. The upshot for these and perhaps other Middle Eastern states is that doing so would likely allow their currency to rise in value relative to the USD, which remains the world’s dominant reserve currency even during a prolonged period of relative weakness.