Economics
Pimco Optimistic 2015 Is as Bad as World Gets; Stays Short Yuan
- Fund manager bullish on dollar though says correction possible
- Yuan to be `much weaker' within 12 months, Spajic says
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An improvement in global economic growth next year may help markets weather an increase in interest rates by the Federal Reserve, according to Pacific Investment Management Co.
Purchasing managers indexes and trade numbers appear to be bottoming out, with many emerging nations recording big trade surpluses after sharp currency declines, Luke Spajic, head of portfolio management for emerging Asia at Pimco, said in an interview Tuesday. While the dollar may correct lower near term, Pimco still expects U.S. rate increases to drive further gains in the greenback against Asian currencies and the yuan in particular, he said.