Dollar May Drop 5% as Deficits Return to Focus, Fund Says
- Greenback vulnerable due to stretched valuations: Brandywine
- Trump administration won’t try to stop dollar weakening
Strong Dollar Is Proving Too Much of a Headwind for Gold
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The dollar is poised to drop about 5 percent by year-end as the market’s focus returns to the worsening U.S. twin deficits and the surge in Treasury yields stalls, according to Brandywine Global Investment Management.
The greenback has become vulnerable to a selloff as its recent rally has stretched valuations, said Richard Lawrence, who helps oversee $76 billion as senior vice president for portfolio management at the Legg Mason Inc. unit in Philadelphia. President Donald Trump’s administration is unlikely to stop the currency from weakening, he said.