SMH Hedge funds have upped their bets that big bank share prices are set to fall, as the weakening dollar takes a toll on foreign investors who had piled into...

SMH Hedge funds have upped their bets that big bank share prices are set to fall, as the weakening dollar takes a toll on foreign investors who had piled into the sector. With global markets taking an increasingly dim view towards Australia's economy in recent weeks, the proportion of investors with ''short'' positions against the big four has also risen from long-term lows. The move is likely to represent a souring view of bank stocks among foreign investors and a response to the sharp fall in the dollar - which erodes the foreign currency value of Australian shares.