CEO of DoubleLine Capital Jeffrey Gundlach on Thursday proposed a disastrous long-term valuation of the US dollar, telling CNBC in an interview that he believed the greenback was “doomed.”

“Ultimately, the size of our deficits – both the trade deficit, which exploded after the pandemic, and the budget deficit, which is, of course, completely out of the ordinary – suggest that in the medium term – I don’t not really think this year, exactly, but in the medium term the dollar is going to fall quite substantially, “Gundlach said on” Halftime Report. “

“This will be a very important momentum, because one of the things that has helped the bond market, without a doubt, has been foreign buying, as interest rate differentials have favored hedged US bond positions for foreign bond investors. “, he added.

The so-called king of bonds made his remarks as the US dollar index traded around 92.64 on Thursday, up about 0.25% on the session. The dollar index, which measures the world’s reserve currency against a group of six currencies, rose 3% year-to-date.

“When it was below around 89, we announced very publicly that we were positive on the dollar for the short term,” said Gundlach, whose Los Angeles based investment firm has over $ 135 billion in assets under management as of March 31.

“It’s all about what your horizon is,” Gundlach said. “In the near term, the momentum has been and will continue to be in place for the dollar to be slightly or moderately stronger.”

“In the longer term, I think the dollar … [is] condemned, “he added.

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