Investec AM remains short Aussie dollars after hung parliament

Investec Asset Management, which runs more than $5.3bn in active currency funds, is retaining its short position on the Australian dollar as the country faces its first hung parliament since the Second World War.

In the closest election for 70 years on Saturday, the incumbent Labour Party and Liberal-National Coalition both fell just short of the 76 seats needed to form a Government. The Australian dollar was down more 100 points earlier today, but has rebounded to near parity. "We were short Australian dollars well ahead of the election and have not really taken too much notice of it," Investec currency manager Paul Carr says. "We took the position because we felt valuations looked a little stretched, and we are in a bit of a ‘risk off' environment which could hit the dollar. "The dange...