BCA Research Says Sell the Dollar: Favor Asian and European Currencies

Investment research firm BCA Research has released its latest currency strategy, recommending that investors sell the US dollar and rotate into the Japanese yen, South Korean won, euro, Taiwan dollar, and Singapore dollar.

The firm argues that declining US real interest rates and weakening foreign capital inflows into US markets will put pressure on the greenback. Currencies backed by current account surpluses stand to benefit.

BCA currently holds long positions in the South Korean won, Japanese yen, and Taiwan dollar against the US dollar, while using the Hungarian forint as a proxy vehicle for euro exposure.