dollar

THE BIG QUESTION

Investec's Alastair Mundy has warned investors not to be reliant on dollar or sterling ‘safe havens' as the US and UK economies face a tough time reining in their burgeoning deficits.

Next year should be better. Not a particularly positive opening gambit, but unsurprising in view of current volatility.

The fear of contagion spreading from Europe is likely to keep the Fed funds rate low for longer and the rhetoric used by the Fed is unlikely to change as rates are kept low for ‘an extended period'.

Henderson chief economist Simon Ward believes the yen, rather than the US dollar, could be the big winner from a loss of confidence in the euro.

Miton manager Martin Gray shares his thoughts on the currency markets and why UK interest rate rises are more likely to come in years, not months.

Speculators increased bets against sterling to record levels even after the formation of the new coalition Government, as worries escalated over the health of the UK finances.

THE ALCHEMIST

Santander's Hak Salih has been increasing his fund's exposure to defensive stocks, believing the UK economy will remain volatile for a number of years.

Barclays Wealth has added multi-currency hedged share classes across its entire Dublin-domiciled GlobalAccess fund range.