UBS Forecasts Further Drop in US Dollar, Recommends Reducing USD Investments
UBS predicts that the U.S. dollar will continue to decline, advising investors to reassess their portfolios.
The bank cites shrinking interest rate advantages and a growing fiscal deficit as key factors contributing to a medium-term depreciation of the dollar, which has already fallen 5% since June. UBS recommends strategies such as currency hedging, diversifying into other currencies, and allocating up to 5% in gold to mitigate risks.
They also expect the Swiss franc to strengthen against the dollar, suggesting that investors reduce their USD holdings and consider alternatives like the euro and British pound.
Clever Robot News Desk 2nd October 2024
