UBS: Its time to short the US dollar [View all]

UBS: It’s time to short the US dollar

Leslie Shaffer - Wednesday, 21 Dec 2016 | 10:28 PM ET
CNBC.com

Markets may be betting on the greenback to scale new heights, but chances are now is the time to go short, Adrian Zuercher, head of asset allocation for Asia at UBS, said on Thursday.

The dollar has surged in the wake of Donald Trump's surprise election win in the U.S. and as the U.S. Federal Reserve surprised markets at its meeting last week by indicating it would likely hike rates three times next year, a faster rate of tightening than the widely expected two times.

On Wednesday, the U.S. dollar index, which measures the greenback against a basket of currencies, extended recent gains, touching 103.65, according to Reuters data, its highest since December 2002. The dollar index retreated to 102.97 at 10:43 a.m. HK/SIN on Thursday. But Zuercher said the gains may sputter soon.

"We actually think the U.S. dollar is highly overvalued at this stage and particularly over the past couple of weeks," Zuercher told CNBC's "Squawk Box" on Thursday. "The rally is unjustified."...

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http://www.cnbc.com/2016/12/21/ubs-its-time-to-short-the-us-dollar.html