Rich Asians Mostly Stick With Dollar Rally UBS Says Near End
- Some hedge funds see euro reaching parity versus dollar: UBS
- The bank starts trade of selling euro against Norway's krone
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UBS Group AG, the world’s largest private bank, is telling its wealthy clients that the U.S. dollar’s gains are set to be limited as the Federal Reserve will probably tighten policy gradually after liftoff next month.
The Swiss bank initiated a trade this month to sell the euro versus Norway’s krone -- rather than against the dollar -- for clients who have given it a mandate to manage their assets, said James Purcell, Hong Kong-based cross asset strategist at UBS’s wealth management business. The greenback is poised to peak around $1.05 against the 19-nation currency even with the prospect of further European Central Bank stimulus , he said.