Fund Titans Are Betting on Everything Gaining Against the Dollar
- UBS Asset Management likes Latam currencies, M&G sees yen rise
- Dollar to weaken as Fed nears end of interest-rate hike cycle
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The dollar has defied predictions of a prolonged slump since at least the beginning of the year but top money managers say it’s now on borrowed time as US exceptionalism wanes.
The greenback is weakening as US interest rates near a peak and the Federal Reserve’s aggressive tightening begins to take a toll on the world’s largest economy, investors say. That will set the stage for the likes of the yen, kiwi and emerging-market currencies such as the Brazilian real and Colombian peso to strengthen, according to AllianceBernstein and UBS Asset Management.