Gundlach With Pimco See Dollar Extending Best Rally Since 2008


Forex Trading Floors brings todays latest news on The Dollar from Bloomberg.

The U.S. dollar strengthened as two of the world’s biggest bond investors said they expect it to extend the biggest rally in six years.

Jeffrey Gundlach at DoubleLine Capital LP and Scott Mather of Pacific Investment Management Co. both said they’re bullish. U.S. economic growth will be 4 percent in the years ahead, Mather said, versus the 1.3 percent pace the International Monetary Fund predicts for Europe in 2015. New Zealand’s dollar led declines against the greenback today after a report showed inflation in the South Pacific nation slowed.

“The dollar is the place to be,” Gundlach said yesterday at’s Inside Fixed Income Conference in Newport Beach, California. It’s a “no-brainer” for Germans and Spaniards to put their money into U.S. Treasury securities, he said.

The kiwi slid 1.1 percent to 78.46 U.S. cents at 7:05 a.m. in London, the biggest one-day decline since Oct. 3. New Zealand’s annual inflation rate fell to 1 percent in the third quarter from 1.6 percent in the previous three months, prompting speculation policy makers will delay raising interest rates.

The Bloomberg Dollar Spot Index, which tracks the currency against 10 other currencies, rose 0.1 percent today to 1,067.97, extending this year’s advance to 4.8 percent, the most since 2008. The dollar gained 0.1 percent to $1.2640 per euro and appreciated 0.1 percent to 107.24 yen.

Pimco is betting the dollar will appreciate versus the euro and the yen, according to Mather, one of three managers for the $202 billion Pimco Total Return Fund, speaking at the same conference as Gundlach.

The strong dollar should last for several years, said Mather, who is based in Newport Beach.

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