BEARISH bets for the dollar are turning savage, with Credit Suisse slashing its forecast to US75c after conceding the currency is "normalising" quicker than it expected.
In one of the biggest dollar calls in the market by a major bank, Credit Suisse yesterday slashed its 12-month forecast to US75c. The move comes less than two months after the bank made one of the first downgrades in the market, cutting its forecast for the currency to US85c.
"It has become clear to us that the process of 'normalisation' is occurring more quickly than even we had anticipated," said the bank's London-based head of commodities research, Ric Deverell.
"Today we revise our three-month forecast to US87c, and our 12-month forecast to US75c."
In recent months experts have cut their dollar bets as the US Federal Reserve signals tapering its stimulus program and China slows, with National Australia Bank, Westpac and Goldman Sachs lopping targets last week.
