Dollar Bear Market Called as Gundlach Sees Moment of Truth
- U.S. Dollar Index may fall as much as 10%, Amundi Pioneer says
- Short-term rate differentials between U.S. and rivals narrow
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The dollar is poised to slide into a “modest bear market” as Treasury yields collapse on the back of the Federal Reserve’s dovish pivot.
That’s the view of Amundi Pioneer Asset Management’s Paresh Upadhyaya, who says Intercontinental Exchange Inc.’s U.S. Dollar Index may drop 5% to 10% from current levels as American short-term interest rates fall closer to yields in the rest of the world. The gauge’s decline to its 200-day average price signals a “moment of truth,” tweeted Jeffrey Gundlach, chief executive officer at DoubleLine Capital.