Investors Should Be Wary of Negative Dollar Sentiment, RBS Says

By Justin Carrigan

Oct. 12 (Bloomberg) -- Investors should be “alert to events” that may change negative sentiment toward the dollar, according to Royal Bank of Scotland Group Plc.

“The Federal Reserve may well be one of the last to tighten this cycle, but this is the consensus view and thus to a significant extent it is already priced into the poor dollar performance,” Greg Gibbs, a currency strategist in Sydney, wrote in an e-mailed report today. “I am not suggesting that the dollar is about to turn around, but warning that current sentiment has swung well into the pessimistic camp for the dollar, and at such times you need to be alert to events that may shift sentiment.”

The dollar rose 0.4 percent to 90.16 yen as of 6:40 a.m. in London and was little changed at $1.4720 per euro.

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net