The dollar has held up surprisingly well post-downgrade, and this strategist says the strength could continue.
You might think that a ratings downgrade and an explicit Federal Reserve announcement that interest rates aren't going anywhere would hurt the dollar. But lo and behold, it hasn't been beaten down as badly as you might expect. Can it last?
Adarsh Sinha, head of Asia Pacific G10 FX Strategy at BofA Merrill Lynch, says investors are moving away from some developing market assets and going where growth prospects look stronger. But, he says, "I'm not convinced yet that even if the Federal Reserve does go down the path of quantitative easing over the next six months that the dollar will necessarily weaken."