Bank of America: Dollar's Rise Comes with Rising “Asymmetric Risks”

The dollar has risen since the Federal Reserve's December meeting despite narrowing spreads between it and most other currencies around the world, Bank of America said, in what could be a “wake-up call” for bulls at a time of lopsided market sentiment. “Despite the opposite spread movements, the dollar remains supported,” Alex Cohen, Adarsh Sinha and Janice Xue, foreign exchange strategists at Bank of America, wrote in a report on Tuesday: ”Crowded positions and growing convergence in FX popularity expose asymmetric risk. ”