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Bloomberg
Emerging-market currencies offer some of the best value as an eight-year run of dollar strength is “close to the end,†according to Pacific Investment Management Co (Pimco).
“We like to be long a number of those,†Gene Frieda, a Pimco strategist in London, said.
Slowing US growth will finally put a dent in the greenback, while counterparts in the developing world are about 15 percent undervalued, according to Frieda. Japan’s yen is a “unique†investment in that it’s a safe currency that’s actually cheap, he said. Risky assets could get an additional boost from the Federal Reserve, which was expected to hold interest rates steady while opening the door to a cut. The prospect of Fed cuts will be dependent upon results of a meeting between President Donald Trump and China’s Xi Jinping at the G-20.