Eurizon’s Jen Predicts Dollar May Fall Another 15%
The U.S. dollar may fall another 15% from its current level, according to Eurizon SLJ Capital Ltd. Chief Investment Officer, Jen.
Jen, who oversees $4.5 billion in assets, said that the dollar could weaken further as investors bet on higher interest rates in the U.S. and other countries. She said that the dollar could fall to its lowest level since the financial crisis of 2008.
The Dollar’s Decline
The U.S. dollar has been in decline since the start of 2021. It has fallen more than 10% against a basket of major currencies, including the euro, the British pound, and the Japanese yen.
The decline has been driven by a number of factors, including the Federal Reserve’s decision to keep interest rates low and the U.S. government’s large fiscal stimulus package.
The dollar’s decline has been further exacerbated by the increasing demand for higher-yielding assets, such as stocks and commodities. This has led to a shift in investor sentiment away from the dollar and towards other currencies.
Higher Interest Rates
The dollar’s decline has been further accelerated by the expectation of higher interest rates in other countries. Investors are betting that higher interest rates will lead to higher returns on investments in those countries.
This has led to a shift in investor sentiment away from the dollar and towards other currencies. This shift has been further exacerbated by the increasing demand for higher-yielding assets, such as stocks and commodities.
The expectation of higher interest rates has also led to a weakening of the dollar against other currencies. This has been particularly evident against the euro, which has gained more than 10% against the dollar since the start of 2021.
Impact on Global Markets
The weakening of the dollar has had a significant impact on global markets. It has led to a surge in the prices of commodities, such as oil and gold, as investors seek to hedge against the dollar’s decline.
The weakening of the dollar has also had an impact on the stock market. Many companies that do business internationally have seen their stock prices rise as the dollar has weakened.
The weakening of the dollar has also had an impact on the bond market. Investors have been buying bonds denominated in other currencies, such as the euro, as they seek to benefit from higher yields.
Jen’s Outlook
Jen believes that the dollar could fall further as investors continue to bet on higher interest rates in other countries. She said that the dollar could fall to its lowest level since the financial crisis of 2008.
Jen also believes that the weakening of the dollar could have a positive impact on the global economy. She said that it could lead to higher growth in other countries, as well as increased investment in those countries.
Jen also believes that the weakening of the dollar could lead to increased demand for commodities, such as oil and gold. This could lead to higher prices for those commodities, which could benefit producers and consumers alike.
Conclusion
The U.S. dollar has been in decline since the start of 2021, and Eurizon SLJ Capital Ltd. Chief Investment Officer, Jen, believes that it could fall another 15% from its current level. The decline has been driven by a number of factors, including the Federal Reserve’s decision to keep interest rates low and the U.S. government’s large fiscal stimulus package. The expectation of higher interest rates in other countries has also led to a weakening of the dollar against other currencies. Jen believes that the weakening of the dollar could have a positive impact on the global economy, as well as increased demand for commodities, such as oil and gold.