US dollar likely to face downward pressure in the near-term – JP Morgan

Tai Hui, Chief Asia market strategist at JP Morgan Asset Management offers his view on the US dollar for the near term, as the Fed is likely to announce tapering sooner than expected.

Key quotes

"The market in the near term is going to focus on the fact that we expect US Treasury yields to keep rising on the back of the Fed's tapering of QE and also the ongoing recovery in the US economy" 

"Treasury yields are not going to rise indefinitely. At some point, they're going to stabilize and I think that's when the dollar is going to face a bit more downward pressure and that's why we are still expecting the dollar to get weaker." 

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