The consensus among foreign-exchange forecasters is for structural dollar weakness, but one problem they encounter has been the relative dearth of alternatives. Gold, up 25% in the first half of 2025, was clearly the first port of call for asset allocators. Christine Lagarde has made the case for the “euro moment” with limited success. The Chinese and the Japanese are loath to allow their currencies to appreciate and choke off exports. So where should asset allocators direct their capital?
Macquarie’s global strategists, Gareth Barry and Thierry Wizman, answered this question by posing their own in a note issued Monday entitled, “If the dollar is rich, what is cheap?”
Their answer, based on the relative valuations is the Japanese yen, the Canadian dollar and the Korean won. However, taking into consideration the exposure to U.S. assets accumulated by a foreign country that has the potential to be unwound, the Norwegian krone looks compelling, they say.
