You know the euro is in deep water when a doyen of the banking industry, Lord Jacob Rothschild, takes a £130 million ($200 million) bet against it.
Lord Rothschild, an elder member of the dynastic Rothschild banking family, has taken the position against the euro through RIT Capital Partners, the 1.9 billion pound investment trust of which he is executive chairman, according to a report in the British newspaper The Daily Telegraph.
As cynicism that the single currency is on its last legs continues to spread among some euro zone politicians and the public , the influential financier has used the currency as a form of hedge.
RIT has taken a 7 percent net short position in July, in terms of principle currency exposures on the euro , up from a 3 percent net short position in January. “Given a net asset value of £1.836 billion at the end of July, the position is worth £128 million,” the newspaper reported.
The Telegraph quoted sources close to the banker as saying that that his current position against the euro is a realistic one given that the currency remains weak and not a “dogmatic, negative view” on the currency per se.Page 1 of 3 | Next Page