We think it rolls over here.” He added: “We hold that view because we see real interest rates going deeper into negative territory.” Negative real rates prevail when inflation is higher than nominal interest rates.
“At UBS we have a negative U.S. dollar view,” Gordon said in Singapore.
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Dollar finds footing after skid on Trump policy worries
The dollar bounced back from fresh multiweek lows against the yen and euro inspired by lingering concerns about Donald Trump’s trade policies and stance toward the U.S. currency.
However, now that a course toward a hard Brexit has been set in motion, the loss for the government brought extra ambiguity and encouraged a few GBP sellers,” she said.
Read: Why the Supreme Court’s Brexit ruling still matters, even after May’s speechMeanwhile, the Turkish lira slumped after the country’s central bank failed to raise rates.
Trump said Monday the U.S. would impose a “very major” border tax on companies that move some operations overseas.
The dollar USDJPY, -0.46% slipped briefly to ¥112.52 in early morning trade, its lowest since Nov. 30, before bouncing back to ¥113.80, up from ¥112.70 late Monday in New York.