The Australian dollar fell in evening trade on the back of rumours that billionaire US investor George Soros is betting the local currency will fall. The Aussie dollar slipped from $US1.0284 in late local trade to $US1.0253 in offshore trade as traders reacted to unconfirmed rumours that Mr Soros - who famously shorted the British pound back in 1992 - was planning a raid on the dollar ahead of Tuesday's interest rate announcement. A large number trades shorting the dollar totalling $US1 billion were placed via Hong Kong and Singapore late Monday, believed to be by Soros Fund Management. "Someone ... seems to be betting on a rate cut," said one Sydney-based FX trader. "I've heard the George Soros rumour tonight. A billion dollars sounds like a lot, but it's not enough to move the Australian dollar and it's not a lot for George Soros, but there is a play happening in the FX market. "If it is him, it's probably a bet on a rate cut. These days a billion bucks can't do much to the Aussie." Short selling involves an investor borrowing a security from a brokerage, which provides it from its own inventory. The security, in this case Australian dollars, is then sold. If the bet works out, the value of the dollar falls, the investor buys Aussie dollars back at a lower price, banks the difference and returns them to the broker in what’s known as short covering. If the value of the security rises, the investor pays more to buy them back and hence loses money on the trade. Mr Soros is a Hungarian-American business magnate, investor and philanthropist, who has built a reputation over the past 25 years of picking the impact of government decisions on currencies and commodities. In 1992, based on British government policy changes, Mr Soros famously shorted the British pound. He bought German marks, earning a staggering $US1.8 billion profit for his fund. It is known as the day George Soros "broke" the Bank of England. Mr Soros sold out of gold investments late last year, sparking rumours that he would again be active in global currency markets. According to reports out of Japan, his investment company has made $US1 billion by shorting the yen between November 2012 and February this year. Whatever the result of the rumour, it will certainly be better news for Mr Soros - news agency Reuters prematurely declared him dead in mid-April, accidentally publishing his obituary.

The Australian dollar fell in evening trade on the back of rumours that billionaire US investor George Soros is betting the local currency will fall. The Aussie dollar slipped from $US1.0284 in late local trade to $US1.0253 in offshore trade as traders reacted to unconfirmed rumours that Mr Soros - who famously shorted the British pound back in 1992 - was planning a raid on the dollar ahead of Tuesday's interest rate announcement. A large number trades shorting the dollar totalling $US1 billion were placed via Hong Kong and Singapore late Monday, believed to be by Soros Fund Management. "Someone ... seems to be betting on a rate cut," said one Sydney-based FX trader. "I've heard the George Soros rumour tonight. A billion dollars sounds like a lot, but it's not enough to move the Australian dollar and it's not a lot for George Soros, but there is a play happening in the FX market. "If it is him, it's probably a bet on a rate cut. These days a billion bucks can't do much to the Aussie." Short selling involves an investor borrowing a security from a brokerage, which provides it from its own inventory. The security, in this case Australian dollars, is then sold. If the bet works out, the value of the dollar falls, the investor buys Aussie dollars back at a lower price, banks the difference and returns them to the broker in what’s known as short covering. If the value of the security rises, the investor pays more to buy them back and hence loses money on the trade. Mr Soros is a Hungarian-American business magnate, investor and philanthropist, who has built a reputation over the past 25 years of picking the impact of government decisions on currencies and commodities. In 1992, based on British government policy changes, Mr Soros famously shorted the British pound. He bought German marks, earning a staggering $US1.8 billion profit for his fund. It is known as the day George Soros "broke" the Bank of England. Mr Soros sold out of gold investments late last year, sparking rumours that he would again be active in global currency markets. According to reports out of Japan, his investment company has made $US1 billion by shorting the yen between November 2012 and February this year. Whatever the result of the rumour, it will certainly be better news for Mr Soros - news agency Reuters prematurely declared him dead in mid-April, accidentally publishing his obituary. This story Is Soros shorting the dollar? first appeared on The Sydney Morning Herald.