Report: Soros Claims 'There is a Mystery Buyer of Euros in the Market

Der Spiegel recently interviewed the master of all currency market speculators: George Soros.

According tothe Der Spiegelinterview, Soros suggests that the reason the euro continues to outperform the U.S. dollar is because of there is “mysterious buyer” in the market.

The euro has held up surprisingly well despite turmoil in European debt markets. It is up 7.6 percent against the dollar so far this year.

During the interview, theDer Spiegel interviewer posited that the “mysterious buyer” was most likely the intervewee. Although Soros eschewed the notion, it probably would not be unfair to assume that he possesses some small part of arcana regarding the identity of the “mysterious buyer."

SPIEGEL: As an investor, would you still bet on the euro?

Soros: I certainly would not short the euro because China has an interest in having an alternative to the dollar. You can count on China to back the efforts of the European authorities to maintain the euro.

SPIEGEL: Is that the reason why the euro is still so strong compared to the dollar?

Soros: Yes. There is a mysterious buyer that keeps propping up the euro.

SPIEGEL: And it is not you.

Soros: It is not me (laughs).

Soros has been very vocal in regards to the eurozone debt crisis and has stated as much in several different publications. He has pertinaciously maintained that Europe needs to establish stronger support for eurobonds (international bonds that are denominated in a currency not native to the country where they were issued) and he has sharply criticized Germany (the strongest and most creditworthy country in the erurozone) for not doing enough to back the international bonds.

For the few remaining readers who are not familiar with Mr. Soros, he is the left-leaning philanthropist most famously known for making more than a billion dollars in profit betting against the British pound in 1992, forcing the country to withdraw from the European Exchange Rate Mechanism.

“[S]peculation makes any crisis worse,” Mr. Soros recently admited. However, he has a different definition of "speculator," and says that it is central banks that are now the biggest speculators in the market, as they are currently the “most important buyers and sellers of currencies.”

“Hedge funds have definitely been supplanted by central banks. Markets expect the authorities to produce a financial system that actually hold together. If there is any hole in that system, speculators will rush through that hole,” he adds.

He would know. After all, this is the same man who "broke the bank of England" and, as many have theorized, made a fortune "speculating" on the credit-downgrading of the U.S.

Read the full interview here.

[Author's note: this article was researched and edited when an earthquake struck the Washington D.C. and Northern Virginia area. I wonder if I'm on to something]