Money Markets Show Return of Dollar Shortage, ABN Amro Says

By Justin Carrigan

Feb. 3 (Bloomberg) -- Money markets are showing the same shortage of dollars that drove the U.S. currency’s gains in September through November, ABN Amro Holding NV said.

“The implication is that deleveraging is again a factor creating demand for the dollar,” Greg Gibbs, director of foreign-exchange strategy at ABN Amro Australia Ltd. in Sydney, wrote in a e-mailed report yesterday. “This is all tied up with the confidence the market has in the global authorities to turn around the global credit crisis and prevent a further deterioration in global financial asset prices. Confidence in the effectiveness of government interventions is waning.”

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net