Contrarian Jim Rogers backs a US dollar rally

Clearly we have the battle of the Jims! Gold super bug Jim Sinclair is forecasting a dollar crash this month on the back of calls for a new super reserve currency, while veteran investor Jim Rogers thinks the dollar is due for a bounce. So far the second Jim is winning, but the first is being compensated by a new all-time high for gold.

‘Right now, everybody including me is pessimistic on the U.S. dollar,’ Rogers said. ‘That usually leads to a rally, whatever the asset is, and I would just suspect it’s going to happen again this time.

‘How long will it last? I don’t know,” he said. “It depends on how the world evolves. Somewhere along the line, I expect I’ll have to sell the rest of my dollars.

‘I don’t know any emerging market stock markets that are so high I’d call them a bubble,” Rogers said. “They’re certainly all up a lot, maybe they’re too high, but being too high is not a bubble for anyone who knows financial markets.’