The US dollar could hit bubble levels as investors seek safe havens, according to legendary investor Jim Rogers.
“The dollar is going to get overpriced,” Rogers said in an interview with Real Vision TV released Friday, “and the dollar might even turn into a bubble, depending on how bad the turmoil is.”
People are seeking safe havens for their assets and plowing it into dollars, raising the currency’s value, Rogers said.
“The US dollar is strong and will continue to be strong, because everybody’s panicked about the world,” he said. “And when there’s panic, people look for a safe haven.”
“Now, they think the US dollar is a safe haven. It’s not. It is certainly not,” he added.
Rogers notes in the interview that he is heavily exposed to the currency. There is simply no where else to go, he said.
“I own a lot of US dollars, though. Not because it’s a safe haven, but because people think it’s a safe haven. And when the world falls apart, people will put their money into the dollar. That’s going to mean the dollar’s going to go up, so that means a lot of currencies will go down, including the Chinese currency, including the European currency, the British currency. Many other currencies will go down.”
The dollar has been rising precipitously against many currencies recently, particularly the Euro.