UBS says the dollar’s surge is ‘unlikely to endure’ as the Fed will be forced back into rate-cutting mode. Strategists reveal when this could happen and name 3 global currencies that are now a better bet.

• The dollar index has hit 20-year highs following a strong, sustained rally since last September.
• That trend may not last much longer according the UBS Global CIO office, led by Mark Haefele.
• UBS lays out why the dollar rally could end and names 3 other currencies that are a better bet.

The US dollar’s dominance as the global reserve currency has been unhindered by the pandemic and recent stock market slump, despite the aspirations of China and the countries that formulated the euro.

The DXY (US dollar index) has been on a strong and sustained upward move since around last September as it’s “safe-haven” status remained unrivalled and it’s hit its highest in 20 years this month.

That trend may not last much longer according the UBS Global CIO office, led by Mark Haefele, In a note co-authored with senior US economist Brian Rose, UBS warned that while the DXY bull run has some legs left due to continued risk aversion among investors, things are set to turn around within months.