The dollar could continue to outperform other safe-haven currencies if risk aversion persists following a recent selloff in tech stocks, ING’s Francesco Pesole says in a note. The dollar offers strong growth and attractive yields compared to other safe havens such as the Japanese yen and Swiss franc, he says. “Whether this is a moderate correction in a stellar year for artificial intelligence stocks or the start of a more prolonged equity downturn, the dollar should outperform while risk aversion holds,” he says. In the medium term, however, the dollar could fall if a potentially prolonged equity selloff prompts a repricing in U.S. rate-rise bets, he says. The DXY dollar index rises to a 13-month high of 101.687. ([email protected])
