UBS advises investors to reallocate funds held in US dollars

The US dollar is once again the focus of investor attention due to the renewed volatility in financial markets sparked by President Donald Trump’s erratic policies, says Investing.com. 

The moves in the US currency reflect concerns regarding the country’s economic growth, inflation, and monetary conditions. Besides, Dean Turner of UBS highlights the key role of investor positioning in the greenback’s weakening.

He believes the dollar is losing its safe-haven status, driven by the policies of the American administration. At the same time, Turner warns against a full exit, as global investors are unlikely to abandon the greenback altogether due to US liquidity. However, he expects the currency to weaken in the coming quarters amid economic uncertainty, along with trade and budget deficits. 

The analyst advises reallocating funds held in US dollars. He recommends paying attention to the British pound, Australian and New Zealand dollars, Swedish and Norwegian krona, as well as to safe currencies, such as the Swiss franc and Japanese yen.