SWIP takes short-term underweight on the US dollar

Since mid-July, the dollar has risen against all the major currencies, in particular some 21pc against the Australian dollar, 14pc against sterling and 12pc against the euro. Roddy Macpherson, investment director for global bonds & economics at SWIP, pointed out that the group has benefited from being a buyer of the dollar over this period, having correctly identified the downward trend in interest-rate differentials relative to those in the US. However, he believes that this trend has now become less defined. He said: "The relatively low-yielding undervalued dollar has gained support...