Is it time to reduce exposure to the US dollar?
CIO believe investors should therefore reduce US dollar exposure by partially hedging dollar assets, adding international exposure, switching USD cash and fixed income exposure for those in other G10 currencies, or by using options. We also believe gold can be an effective diversifier.The US dollar weakness should continue over the medium term.Since its near-term peak in late June, the DXY dollar index has fallen over 5%.With the dollar’s interest rate advantage over other currencies set to narrow further over the coming year, we expect the greenback to continue to depreciate.We...
