0937 ET - If US inflation has already peaked, the dollar should stabilize as the interest rate differential between the US and elsewhere would logically narrow, Benjamin Melman, global chief investment officer at Edmond de Rothschild Asset Management says in a note. The asset manager also raises portfolio duration--a measure of the sensitivity of a bond to changes in interest rates--with US Treasuries and investment grade corporate debt, Melman says. The asset manager, however, remains "somewhat" cautious on European duration. "Markets are already expecting the ECB to raise rates a little above 2.75%, but high inflation in Europe and poor visibility on the ECB's policy suggest we should tread more carefully," he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

November 21, 2022 09:38 ET (14:38 GMT)

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