New York: Bill Gross, the billionaire bond investor, says President Donald Trump’s policies are fuelling a strong dollar and an undervalued peso that are bad for the US and global economy.
“I think the dollar is a concern,” Gross, who manages the $1.8 billion (Dh6.6 billion) Janus Global Unconstrained Bond Fund, said in a Bloomberg TV interview Wednesday. “It is the global currency. To the extent that the dollar strengthens, not only are US companies affected to the negative, the global marketplace and global countries are affected too.”
A strong dollar makes US exports less competitive and makes US assets attractive to overseas investors without increasing productivity or real economic growth, according to Gross. The Mexican peso has fallen 13 per cent since the November 8 election as Trump has advocated for construction of a wall between the two countries and threatened to raise taxes on imports from the US neighbour.
