Deutsche Bank's Ruskin Says Fed Rate Hike Could Lead to Dollar Gains

NEW YORK (TheStreet) -- All of the consternation over a potential Federal Reserve rate hike in September hasn't moved Deutsche Bank Global head of G10 FX Strategy Alan Ruskin.

"I think we're making way too much of a 25 basis point rate hike," he said in a Wednesday appearance on BloombergTV's "Bloomberg Markets." "In the grand scheme of things, this is not a big deal, really."

Ruskin, for his part, thinks that the dollar would do just fine if the Fed hikes rates this year and then hikes again next year, saying that he would expect the currency to gain 5% to 10% against the Euro and Australian Pound and the British Pound.

"Moderate gains," Ruskin added. "Not dramatic, but solid gains nonetheless."

A projected Bank of England interest rate cut, the expected Fed rate hike and a moderately slowing economy would all contribute to the British Pound's continued weakness against the dollar, Ruskin said, adding to currency woes that were exacerbated by Brexit.

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