Institution: Declining foreign demand for US debt signals a weakening US dollar

Tim Murray, capital markets strategist at T. Rowe Price, noted that the US dollar has fallen sharply in recent months due to declining foreign demand and has room for further depreciation. The strategist stated, "The Trump administration's confrontational stance on trade and foreign policy has reduced the willingness of foreign institutions to hold US assets, particularly US Treasuries." Murray suggested that investors may need to consider adjusting their portfolios (especially fixed income allocations) accordingly to prepare for further dollar weakness. He recommended shifting some US stock positions into non-US stocks (such assets tend to appreciate in dollar terms when the dollar depreciates) and increasing holdings of assets in other currencies. (Jinshi)