UBS: The decline in the dollar will continue

17.04.2017 / 10:39

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The dollar's recent downdraft hasn't ended, with further weakness likely ahead, UBS said. The dollar index, which measures the greenback against a basket of currencies, was trading as high as 100.47 in Asia trade.

The index was above 101 early last week, but took a hit after U.S. President Donald Trump complained the currency was "getting too strong" in an interview with The Wall Street Journal. From UBS, expected the dollar would fall further.

"As we see more disappointment, from Trump's policies and at the same time, the world outside the U.S. looks better, I think we're still going to see that continuation of dollar weakness.

"We do think the euro is heavily undervalued, with a chance that actually the ECB might taper in the second half of the year, then the euro/dollar should see a decent recovery."

source: Bloomberg

Trader I. Ivanov

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UBS: The decline in the dollar will continue

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