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Investors should manage their US dollar exposure
CIO believes investors should therefore reduce US dollar exposure by partially hedging USD assets, adding international exposure, switching USD cash and fixed income exposure for those in other G10 currencies, or by using options. We also believe gold can be an effective diversifier. The US dollar's weakness should continue over the medium term. • From its peak in late June to late September, the DXY dollar index fell over 5.35%, before the sharp bounce in early October. • With the USD’s interest rate advantage over other currencies set to narrow further over the coming year, we expect the greenback to continue ... (full story)