Ruffer: The dollar can be a new defensive asset

The managers of the Ruffer investment company are backing the US dollar to excel once again as an asset that can offset equity risk as global uncertainty continues.

Hamish Baillie and Steve Russell (pictured) have 27% exposure to US dollar assets, despite sterling being the investment trust's base currency, on expectation of the pound weakening further in future. Traditionally viewed as a safe haven currency, the dollar has been through a prolonged bout of relative weakness since the financial crisis, as US quantitative easing lessened its attractions. This summer, however, has seen the reserve currency display fresh strength. The Ruffer managers said: "The dollar has filled the role as an offset to our equity positions in recent times." "A 2...