The US dollar, which slid 7.5% last year against a basket of other currencies, is going to keep on tumbling, according to UBS Financial Services. But for investors, the bank finds, that spells opportunity.

“Expect broad-based dollar weakness in 2021,” even after 2020’s descent, reads a report from Solita Marcelli, CIO Americas, and Jason Draho, Americas asset allocation chief for the UBS unit. They cited factors that have propelled the greenback’s swoon: First, US budget and trade deficits, which are partly financed by foreign investors. Second, the Federal Reserve reducing short-term US rates to near-zero and pledging to keep them down there for some years.

Resurgence among other nations, post-pandemic, is another powerful influence on the dollar’s drop. Citigroup believes the greenback may fall another 20% this year, in part owing to the worldwide optimism engendered by the advent of the…

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