Stephen Roach on outlook for the U.S. dollar, China’s economic recovery

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SINGAPORE — The circumstances are ripe for a pointy weakening within the U.S. dollar within the coming yr, outstanding economist Stephen Roach instructed CNBC on Tuesday.

The U.S. present account and commerce deficits are deteriorating quickly, whereas home financial savings are being weighed down additional, stated Roach, a senior fellow at Yale College. On the similar time, the U.S. will doubtless must spend extra on stimulus to assist an economic system that is been hit by the coronavirus pandemic, he famous.

“There is no free lunch, we’re gonna have to offer overseas traders — who lend us cash to fund our deficits — with some incentive for doing so,” Roach, a former chairman at Morgan Stanley Asia, instructed CNBC’s “Squawk Box Asia.”