UBS Calls Dollar “Unattractive” as Gold Becomes a Preferred Reserve Asset

By Frank Holmes – U.S. Global Investors

The U.S. Dollar Index, when measured against a basket of other major currencies, has declined by approximately 10% this year through mid-June and is currently trading at its lowest level in three years.

That’s no small dip, and there may be additional downside risk due to concerns over America’s growing deficit and the ongoing fluctuations in tariffs.

In a note to clients last week, UBS says the dollar is now “unattractive,” with further declines expected as the U.S. economy slows.

Meanwhile, Bloomberg reports that foreign vendors—from Latin America to Asia—are asking U.S. importers to settle invoices in euros, pesos and renminbi to avoid the currency swings.