Invesco’s de Longis Goes ‘Maximum’ Underweight Dollar Before Fed

Invesco Ltd.’s Alessio de Longis sees more pain ahead for the dollar as the Federal Reserve appears close to easing monetary policy, which would shrink its yield advantage over its peers.

The senior portfolio manager wrote to clients in a September note that his team has raised its bearish convictions on the US currency, moving to “maximum” underweight from underweight. He cited a “narrowing in yield differentials” and positive surprises in economic data outside of the US as reasons for the shift. The group is the most negative on the greenback since June 2024.