The dollar could plunge against the yuan, yen, and pound in the next few months, warns UBS.
UBS Global Wealth Management’s Hartmut Issel told CNBC Thursday in a phone interview: “Since the last month or two, the dollar does not have too much to offer anymore.”
Issel also thinks yield differentials will become more attractive of an investment than equities.
The dollar could weaken against other currencies making credit spreads more attractive than equities during the coronavirus economic meltdown, according to UBS Global Wealth Management.
Hartmut Issel, head of Asia-Pacific equities, chief investment office at UBS Global Wealth Management, told CNBC on Thursday in a phone interview: “Since the last month or two, the dollar does not have too much to offer anymore. Across the board we should see strengthening of the yuan and the yen in the second half of the year at the expense of the dollar.”
Issel added: “We think there will [first be a setback] in areas like investment grade in the US and in APAC (Asia-Pacific), emerging markets and high-yield bonds, but from a risk-reward point of view they will probably have more upside when things go well.”
www.businessinsider.com/us-dollar-will-weaken-against-other-major-currencies-ubs-says-2020-4