Jim Rogers: Dollar Devaluation Coming, Buying Yen, Commodities
Legendary investor Jim Rogers appeared on Bloomberg yesterday, where he discussed the future of the U.S. dollar and his investments. Bloomberg’s Ron Harui and Mike Schneider wrote earlier today:
The U.S. dollar will be “devalued” as policy makers seek to weaken it, undermining the greenback’s role as an international reserve currency, said Jim Rogers, chairman of Rogers Holdings in Singapore.
“They think that if you drive down the value of your money, it makes you more competitive, now that has never worked in history in the long term,” said Rogers…
The dollar is “going to lose its status as the world’s reserve currency,” Rogers said yesterday in a televised interview with Bloomberg News. “It will be devalued and it will go down a lot. These guys in Washington, they want to debase the currency.”
Even though the former partner of George Soros in the legendary Quantum Fund predicts the dollar will be devalued, the U.S. currency has benefitted from the recent turmoil in the global financial system. The greenback has advanced against 15 of the 16 most-traded currencies since the end of June 2008. And the rally could continue for some time. Harui and Schneider wrote:
Rogers predicts the U.S. currency’s rally “will probably go into next year” and said he plans to cut the remainder of his dollar holdings during this period.
“If I were doing it today, and what I have done today, is buy the yen,” Rogers said. “But, it is also an artificial move that’s going on. It’s a difficult problem to find out what is a sound currency.”
In addition to buying Japanese yen, Rogers told Bloomberg News he is buying commodities, claiming that their “fundamentals have not been impaired and, in fact, are improved.” From the piece:
“In mid-October, I started buying commodities, I started buying China and I started buying Taiwan,” he said. “I bought them all, but I’ve been focusing more on agriculture. I mean sugar is 80 percent below its all-time high. It’s astonishing how low some of these prices are.”
Source:
“Rogers Says Dollar to Be `Devalued,’ Buys Commodities (Update2)”
Ron Harui, Mike Schneider
Bloomberg, November 25, 2008
