KEY POINTS
- Citi Private Bank strategists predicted a weaker dollar ahead, given that a Biden administration would reduce uncertainty in international trade policy.
- Following projections over the weekend that Joe Biden has won the U.S. presidential election, the dollar continued diving sharply, while Asian currencies strengthened.
- JPMorgan Private Bank’s Adam Margolis said the theme at play was to continue to look for “opportunities” to trim the overweight exposure on the dollar.
SINGAPORE — The U.S. dollar is poised to further weaken, amid market views that geopolitical risks are falling after the election and that the next stimulus package will likely be smaller than expected, according to analysts.
Citi Private Bank strategists predicted a weaker dollar ahead, given that a Biden administration would reduce uncertainty in international trade policy.
“Victory for President Elect Biden means a return to more conventional governance. As the province of the President, it will result in a major shift in the way foreign policy is conducted. Alliance building will return. ‘Tariff threat first’ negotiating tactics will end,” the bank’s chief investment officer, David Bailin, and Steven Wieting, chief investment strategist and chief economist, wrote in a note published Monday.