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Renminbi

Currency volatility prompts radical rethink

By Steve Johnson

Published: March 22 2009 08:43 | Last updated: March 22 2009 08:43

Last year’s wild swings in the foreign exchange markets appear to be prompting a strategic rethink of the role of currency as an asset class.

Although currency is now widely accepted as a legitimate asset class, it suffers from being a zero sum game, ie it has a market beta of zero, meaning there is no reason to believe investors as a whole should make money.

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