Legendary investor Jim Rogers sees the dollar rebounding in the short-term but remains bearish about its long-term prospects.
The greenback has dropped to 14-month lows recently.
“Everybody in the world has become more and more skeptical about the dollar,” he told the Financial Times.
“The Chinese, the Russians, everybody realizes now that there’s a problem. The dollar’s a terribly flawed currency.”
But Rogers has bought dollars during the past three months in expectation of a rebound.
“There’s so many pessimists at the moment, that it wouldn’t surprise me if there were a rally. Whenever there are a lot of pessimists, including me, it usually leads to a rally,” he says.
“So if there’s a rally I don’t think it will last terribly long, no more than a year or two.”
If a rally doesn’t arise, “I’ll probably have to join in like everybody else and panic and sell the dollar,” Rogers says.
In any case, he sees bad times ahead for the dollar over the next 20 years. “I expect to have no dollars some day in my life, even though I’m an American citizen.”
NYU economist Nouriel Roubini predicts a dollar rebound too, and he thinks it will have a disastrous impact.
“Once the dollar stops falling, you have a sudden reversal of the dollar, you have to close your shorts, you have to dump assets, and you could have a market crash all over the world,” he told CNBC.
© 2017 Newsmax. All rights reserved.