UBS Says It Remains Positive on U.S. Dollar Over Three Months

By Daniel Tilles

Feb. 23 (Bloomberg) -- Investors should “maintain a positive outlook” on the dollar over the next three months and sell the euro against the U.S. currency, according to UBS AG, the world’s second-biggest foreign-exchange trader.

“We hedge our view of either a risk rally or a debasing of the U.S. dollar with a six-month call option on the Australian dollar,” UBS strategist Ashley Davies in Singapore wrote in a report today.

A common euro-region bond would “only prove to be a short-term positive for the euro,” Geoffrey Yu, a London-based strategist at the bank, said in a separate report today.

To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net