The U.S. dollar has been and will likely continue to be on a gentle weakening pattern, Jeffrey Gundlach, chief executive at DoubleLine Capital, said on an investor webcast late on Tuesday.
Gundlach, who oversees more than $100 billion at Los Angeles-based DoubleLine, said the dollar “has not gone up in the past 18 months.” Gundlach has said repeatedly the strength in the U.S. dollar after Donald Trump’s presidential victory would reverse itself.
Gundlach said about the soft dollar in a follow-up interview with Reuters, “The trend is your friend. The dollar went up 30-plus percent from lows in 2011. That’s a big vote for a currency. Plus, President Trump does not want a stronger dollar.”
Last month, Goldman Sachs abandoned the two strong dollar plays in its 2017 trading recommendations, pointing to the Trump administration’s concerns over the strength of the currency, along with improvement in growth in rival economies.
