The U.S. dollar will continue weakening, and investors may borrow it to invest in higher-yielding assets, says Peter Schiff, president of Euro Pacific Capital.
“I don’t know when (the dollar) is going to strengthen,” Schiff told CNBC.
“The dollar isn’t the new yen, it’s unfortunately the new peso.”
A weak dollar and low U.S. interest rates push the greenback toward becoming a carry trade currency, which, like the yen for many years, attracts investors to borrow it cheaply to invest elsewhere. (more)
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