Mark Mobius thinks that the US dollar may be going down, not up.
The greenback is set to weaken as the US government under Donald Trump increases spending on defence and infrastructure, Mobius, executive chairman of Templeton Emerging Markets Group, said Wednesday.
A lower-valued currency, coupled with faster US economic growth, will benefit the rest of the world, especially emerging markets, he said.
“Don’t be surprised if the US dollar gets weak, and not stronger,” Mobius said at the Bloomberg Markets Most Influential summit in Abu Dhabi. “If Trump is going to make America industry competitive, he needs a weak dollar.”
The dollar has surged since Trump’s election on speculation his proposals to increase spending and cut taxes will fuel economic growth and prompt the Federal Reserve to boost interest rates.
