03.09.2020, 10:59
The Dollar could Fall by a Third
Source: ИА "Ореанда-Новости"
OREANDA-NEWS. The dollar may decline by 36% against the euro next year. This forecast was given by Ulf Lindall, who is the chief investment officer of AG Bisset, a foreign exchange risk management company. This was reported by Reuters.
The US currency has dropped about 11% from its peak in 2020 compared to a basket of major currencies. Hedge fund rates against the dollar hit their highest level in ten years, with over a third of funds saying that the dollar short was the most popular with their clients in the current half of the year.
In January, the dollar rate was 1.12 per one euro, in September - already 1.18. In recent weeks, the decline has stalled, "a good opportunity to jump out of the dollar," Lindall explained.
A number of experts believe that the dollar will continue to depreciate amid the collapse of the US economy, exceptionally low interest rates and fears of inflation of the budget deficit due to the program to mitigate the consequences of the coronavirus pandemic.
So, Goldman Sachs analysts believe that by 2023, one euro will be given 1.3 dollars. TD Securities said the dollar is overvalued by about ten percent against other major currencies.
Other investors, on the other hand, believe that the news about the improvement in the US economy will support the dollar. BlackRock experts believe that the world's dependence on the dollar will help prevent its collapse.
The US currency has dropped about 11% from its peak in 2020 compared to a basket of major currencies. Hedge fund rates against the dollar hit their highest level in ten years, with over a third of funds saying that the dollar short was the most popular with their clients in the current half of the year.
In January, the dollar rate was 1.12 per one euro, in September - already 1.18. In recent weeks, the decline has stalled, "a good opportunity to jump out of the dollar," Lindall explained.
A number of experts believe that the dollar will continue to depreciate amid the collapse of the US economy, exceptionally low interest rates and fears of inflation of the budget deficit due to the program to mitigate the consequences of the coronavirus pandemic.
So, Goldman Sachs analysts believe that by 2023, one euro will be given 1.3 dollars. TD Securities said the dollar is overvalued by about ten percent against other major currencies.
Other investors, on the other hand, believe that the news about the improvement in the US economy will support the dollar. BlackRock experts believe that the world's dependence on the dollar will help prevent its collapse.
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