A Fund That Beats 98% of Its Peers Is Shorting the Dollar

Gold Silver Reports (GSR) – A Fund That Beats 98% of Its Peers Is Shorting the Dollar – The greenback will slip against most major currencies as nations from Japan to the U.K. see better growth, spurring higher rates in those markets, said Brendan Murphy, head of global and multi-sector fixed income at BNY Mellon Asset Management North America. Murphy, who manages the $1.1 billion Dreyfus International Bond Fund, is shorting the dollar in favor of long positions across currencies including the Japanese yen and Norwegian krone.                             

“The U.S. dollar still looks expensive to us — we’re in the early stages of a U.S. dollar-depreciating trend,” said Murphy. The yen is “very cheap” and could strengthen to 100 against the dollar by year’s end, he said.

The Dreyfus fund has returned 11 percent over the past year to beat 98 percent of comparable peers, based on data compiled by Bloomberg. Four rate hikes by the Federal Reserve since the start of last year have failed to spur the greenback, with the Bloomberg Dollar Spot Index down 8.5 percent in 2017. The index has extended losses this year, bruised by rising trade tensions with China and worries about America’s burgeoning twin deficits.

“The market has priced in the tightening cycle in the U.S. versus the rest of the world,” said Murphy. “From a currency perspective, you’d expect as other central banks start to tighten in the next few years, that those currencies appreciate and catch up.”

The Federal Reserve will probably take the policy rate to around 3 percent by the end of 2019, with inflation edging higher slowly, said Murphy.  – Neal Bhai Reports (NBR)

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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