Strategist: A weak dollar is a sign of cross-border investor flows.

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Jin10 data May 15 news, Neuberger Berman's strategists said in a report that the recent weakness of the dollar seems to be a sign of cross-border investor flows. "These fund flows are likely related to the outlook for a slowdown in U.S. economic growth, but they may also be consistent with a recovery in U.S. risk assets." U.S. risk assets are rising as dollar investors shift back from government bonds to the stock market. However, if non-dollar investors are taking on greater risks while staying away from the U.S. market, there will be no capital flowing back into dollar assets. This implies that the U.S. stock market is rising, but the dollar remains weak. Neuberger Berman expects the dollar to further fall by 3%-5% against the euro and yen this year, but volatility is expected to increase.

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