Strengthening Dollar Seen by UBS Damping Demand for Commodities
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A strengthening U.S. dollar will damp demand for commodities this year, according to UBS AG.
The greenback, at a four-month high against 10 major peers, will strengthen further because of the Federal Reserve’s tapering of stimulus, the shale oil and gas “boom” and a growing trend for businesses to move back to the U.S., the bank said in a report dated yesterday. That will damage conditions in emerging markets and commodity demand, according to the bank.