Economics

Dollar Bulls Have Reason to Smile Whether or Not Rout Deters Fed

  • Biggest gains likely versus emerging markets, Stephen Jen says
  • Analysts see currency climbing versus most peers by year-end
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All roads lead to a stronger dollar.

That’s the view of Stephen Jen, co-founder of hedge fund SLJ Macro Partners LLP, who spent 13 years at Morgan Stanley where he helped develop a theory known as the “dollar smile.” He’s predicting gains versus emerging-market currencies in particular, whether or not the Federal Reserve succeeds in raising interest rates without sparking market turbulence.