I’ve heard that legendary bond investor Bill Gross had become a U.S. dollar bull. However, I wasn’t able to find much out there from “The King of Bonds” on his outlook for the American currency, besides the following from Internet news site Newsmax.com:

While the dollar has dropped to yet another record low against the euro, the greenback will recover in coming months, according to superstar money manager Bill Gross and other heavyweights.

Rising European interest rates have pushed the euro up nearly 35 percent against the dollar over the past three years, to a high of $1.60.

But a growing number of experts believe the economies of Europe will slump even further than the U.S., forcing the European Central Bank to reverse this month’s interest-rate increase.

The euro will slip about 6.5 percent to $1.50 by year-end and then slide further to $1.45 by the middle of next year, according to the median of 37 currency analysts surveyed by Bloomberg News.

Gross, co-CEO of Pacific Investment Management Co. (Pimco), has turned bearish on the euro for the first time since the common European currency was created in 1999. Pimco runs the world’s largest bond fund.

Grapic Art By Yaroslav B, stock.xchng

Source:

“Bill Gross: Euro Overvalued by 30 Percent”
Newsmax.com, July 17, 2008

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