Emerging markets guru Mark Mobius is predicting that the U.S. currency will weaken and commodity prices will rebound due to depleted inventories. Bloomberg’s Bo Nielsen and Ye Xie wrote earlier today:

“The U.S. dollar will get weaker versus emerging-market currencies,”said Mark Mobius, who oversees about $26 billion in developing-nation assets as executive chairman of Templeton Asset Management Ltd. in Singapore, in a Dec. 24 Bloomberg Television interview. “The reason why we had this weakness in emerging-market currencies is because of the rush into the U.S. Treasuries, into dollars. I don’t think that’s sustainable.”

Bloomberg’s Tim Coulter and Stuart Wallace noted in a separate piece this morning that the emerging markets veteran also sees and end to the recent downturn in commodity prices. Coulter and Wallace wrote:

“Once these economies kick in again with the money supply pouring into these economies, everybody is going to be caught short with no inventory of these commodities and then commodity prices will move up again,” said Mark Mobius, executive chairman of Templeton Asset Management Ltd. in Singapore, who oversees about $26 billion in emerging-market stocks.

Sources:

“Dollar Rally Fizzling as Fed Triggers Risk Appetite (Update3)”
Bo Nielsen, Ye Xie
Bloomberg, January 5, 2009

“Oil Curve Steeper Than ‘99 Shows Possible Gain in ‘09 (Update1)”
Tim Coulter, Stuart Wallace
Bloomberg, January 5, 2009

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