Gundlach Says Dollar Will Drop in 2016
- Greenback erases 2016 advance on signs of economic slowdown
- Deutsche Bank, BofA, BNP Paribas see gains, note challenges
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DoubleLine Capital’s Jeffrey Gundlach sees the dollar weakening this year, challenging an increasingly fragile consensus that the greenback is headed higher, after its worst week versus the yen since July 2009.
Gundlach, who oversees the $54.7 billion DoubleLine Total Return Bond Fund, bought currencies other than the dollar in his diversified funds for the first time in five years last month, he said at an event in Beverly Hills, California, on Friday. The euro is likely to strengthen against the dollar as the probability the Federal Reserve will increase borrowing costs at its March meeting is virtually zero, and only 50 percent for the rest of the year, he said.