LONDON (Reuters) – PIMCO has turned a “little bit more cautious” on the dollar and was a touch underweight the U.S. currency across portfolios, the bond giant’s group chief investment officer Daniel Ivascyn said on Wednesday.
The dollar index has shed nearly 4% so far this year on growing concerns that U.S. tariff uncertainty raises recession risks for the world’s biggest economy.
“We have become a little bit more cautious on the dollar,” Ivascyn told Reuters at the sidelines of a conference in London.
“In fact we are, across portfolios, a little underweight the dollar,” he said.
The dollar was still likely to go up rather than down in the event of a global growth shock, he added.
“However, if we keep running deficits at the levels we’re running, if we continue to have increasing friction with our allies and global trading partners, that dollar exceptionalism will begin to wane over time,” he added.
(Reporting by Yoruk Bahceli; writing by Dhara Ranasinghe; editing by Nell Mackenzie)
