Reply #56: Dollar seen aided by Buffett short-covering rumor (whee! rumors!)

[UpInArms]

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38456.4485784028-834156690&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) - A rumor in currency markets that financier Warren Buffett may be covering his short positions on currency forward contracts could be lending support to the dollar, according to IDEAGlobal currency strategist Sean Callow. There is no way to know for sure whether Buffett really is covering his shorts, Callow stressed. As of Dec. 31, 2004, Buffett's Berkshire Hathaway had $21.4 billion worth of forward contracts in 12 currencies and was warning investors about 'exceptional volatility,' the analyst noted. In recent trades the euro was down 0.8% at $1.2804 and the dollar up 0.9% at 108.22 yen, following news Wednesday that the International Monetary Fund sharply cut its forecast for Japan's 2005 growth.