A $142 Billion Fund Says Dollar Rally Done, Now EM Can Shine
- AMP Capital closes short positions on lira, ruble, and baht
- Naeimi sees limited scope for Treasury yields to advance
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The dollar’s run is ending, and it’s time to return to emerging market currencies after their two-month slump, according to AMP Capital Investors Ltd.
The advance in Treasury yields across the curve will probably stall from here, while U.S.-China trade tensions will turn from being dollar positive to negative, said Nader Naeimi, who runs AMP’s $1.2 billion Dynamic Markets Fund and has begun shorting the greenback. In contrast, the selldown of emerging markets has resulted in a buying opportunity for some of their currencies given their healthy economies, he said.