Pimco's Frieda Says the Eight-Year Run of the Strong Dollar Is About to End

The video discusses the current ambiguities surrounding the US dollar, focusing on the end of an 8-year appreciation cycle due to slowing US growth. It examines the impact of rate differentials and Fed policy on the dollar's value, noting that while the US dollar's yield advantage is compressing, it remains significant. The discussion also covers potential currencies to sell the dollar against, highlighting the yen and undervalued emerging market currencies. Finally, it addresses concerns about US mercantilism and potential currency manipulation linked to tariffs.

What is one of the main reasons for the potential end of the US dollar's appreciation cycle?

• Decreasing interest rates

• Rising inflation

• Slowing US growth

• Increased US growth

Which currency is considered a safe and undervalued option to sell the dollar against?

• Euro

• Pound Sterling

• Yen

• Swiss Franc

By what percentage are emerging market currencies estimated to be undervalued?

• 15%

• 20%

• 25%

• 10%

What is a potential risk of trying to weaken the US dollar through tariffs?

• Strengthening the dollar

• Increasing inflation

• Undermining US growth

• Weakening the euro

What policy could expand into currency space, according to the discussion?

• Globalism

• Isolationism

• Mercantilism

• Protectionism