Mubasher: Pacific Investment Management (Pimco) predicted a close end to an eight-year run of dollar strength, recommending emerging-market currencies as offering some of the best value, according to Bloomberg News. 

A slowdown in the US economy would eventually cap the greenback, while its peers in the developing countries are nearly 15% undervalued, London-based Pimco strategist Gene Frieda was quoted by the news outlet.

The Japanese yen (JPY) is a “unique” safe-haven investment, and deemed cheap, Frieda said.

Risky assets are set to receive support from the Federal Reserve, which maintained its interest rates on Wednesday while hinting a rate cut this year.

The possibility of rate cuts will rely more on the outcome of a planned meeting between US President Donald Trump and his Chinese counterpart at the Group of 20 (G20) summit next week, Frieda noted.

“If there’s a restart to trade talks, I think there will be a tremendous amount of relief in markets and that will probably push out rate cuts at least further into 2019,” he was quoted by Bloomberg.

 Meanwhile, if the Fed goes ahead with cutting rates, it will follow an extended cycle, the Pimco strategist predicted.