Dollar to Extend Advance Amid Recovering Economy, Citigroup Says
By Jeff Marshall - Jul 10, 2013 11:44 AM ET
The dollar will extend gains versus its major counterparts this year and next as more investors recognize the world’s biggest economy is sustaining growth, according to Citigroup Inc.’s Steven Englander.
“The market is still resisting the view that the U.S. is in a recovery,” Englander, head of Group of 10 currency strategy at Citigroup in New York, said today in an interview on Bloomberg Television’s “Surveillance” with Tom Keene and Michael McKee. “Whether against the yen, the euro or emerging markets, the dollar looks very, very sound.”
| The greenback has strengthened this year against all of its 16 most-traded counterparts, advancing 16 percent versus the yen and gaining 2.7 percent against the euro. The Standard & Poor’s 500 Index closed yesterday within 1 percent of a record high after Alcoa Inc. started the U.S. earnings season with results that beat analysts’ estimates. http://www.bloomberg.com/news/2013-07-10/dollar-to-extend-advance-amid-recovering-economy-citigroup-says.html? |
The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major peers, declined 0.3 percent to 1049.98 today in New York after reaching 1056.33 on July 8, the highest level on an intraday basis since June 30, 2010.
“Buying the dollar is still the better call,” Englander said. “The U.S. recovery is unique in a world that’s not recovering.”
The dollar gauge has risen 3.7 percent since June 18, the day before Federal Reserve Chairman Ben S. Bernanke said the central bank may reduce the $85 billion of Treasuries and mortgages it buys each month and end them in mid-2014 if the economy performs in line with Fed projections. Bernanke will speak at a conference today in Boston.
No comments:
Post a Comment