Strong Dollar Trend Almost at an End, Pimco's Kressin Says

  • ECB, BOJ unlikely to aggressively weaken currencies: Kressin
  • Money manager has reduced `underweight' euro, yen positions

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The dollar’s three-year advance is coming to an end as central banks recognize a strong U.S. currency is not in the interests of the global economy, according to Thomas Kressin, Munich-based head of European foreign exchange at Pacific Investment Management Co.

“We believe the strong-dollar trend we’ve seen over the last couple of years has come to an end,” Kressin, whose company manages almost $1.5 trillion, said at Bloomberg’s FX16 conference in London. “The dollar is more likely to trade in a broad trading range against the euro and yen and not make any significant gains any more.”