Fidelity’s Unit Bets Against Dollar Over ‘Erratic’ US Policies

A multi-asset unit of Fidelity International is now underweight the dollar as President Donald Trump’s policies have fueled a rotation out of US assets.

The dollar could weaken further as pension funds, life insurers and other long-term investors continue to diversify away from the US, said Salman Ahmed, Fidelity International’s global head of macro and strategic asset allocation, calling it a structural shift.

Despite a two-day gain, the dollar — supported by the Federal Reserve signaling Wednesday that it is in no hurry to cut interest rates — has fallen more than 6% so far this year, ...