This translation has been automatically generated and has not been verified for accuracy.The U.S. dollar is unlikely to make significant moves higher in the near term because of the ballooning budget deficit, Jeffrey Gundlach, the billionaire chief executive of DoubleLine Capital, said on a webcast presentation on Tuesday.
“The dollar looks terrible,” he said, and “the biggest reason is the way in which we’re gunning the twin deficits.”“We know with metaphysical certitude that the twin deficit is going to go way higher, I’d say to at least 12% of GDP. That would suggest the dollar going all the way back to 2011 levels,” Gundlach said.
He believes the rising twin deficit will drive the dollar lower, despite the currency’s appeal as a safe-haven investment and the likelihood that such assets will be in demand if U.S. stocks fall from their current levels.
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