Allianz Global Investors, which oversees the equivalent of $305 billion, is selling the euro against the dollar saying the region’s leaders aren’t being proactive enough to stem the market turmoil.
“The euro should weaken,” Andreas Utermann, Frankfurt-based chief global investment officer at Allianz, said in an interview on Bloomberg Television’s “On the Move” with Francine Lacqua. “We fear the policy makers will continue to be driven by the markets.”
Utermann said he is “short euro, long dollar.” A short position is a bet currency will decline in value, while a long-position is a wager it will increase.
The euro fell 0.5 percent to $1.2174 at 12:54 p.m. London time, after reaching $1.2170, the lowest level since June 2010.
Utermann said he is “concerned about” the German Constitutional Court’s view on Europe’s rescue mechanisms and about the risk that Greece may leave the shared currency.
“When the euro was launched, it actually went to 81 cents against the dollar,” he said. “I am not predicting that, but certainly weakness in the euro will help the euro zone fix some of its problems.”