Dollar Looks Overvalued; Rupiah May Outperfom, Mizuho's Chang Says

The video discusses the current state of the dollar trade, highlighting that the dollar appears overvalued from a fundamental perspective. It explores the impact of global growth slowdown on the dollar, noting that historically, such conditions have been beneficial for the dollar. However, the video presents a bearish outlook on the dollar due to factors like the waning impact of fiscal stimulus and widening fiscal deficits. It also analyzes currency trade dynamics, focusing on countries' exposure to global trade, and suggests that the Indonesian rupiah could outperform due to strong domestic demand and low inflation.

How might the focus of investors shift regarding countries exposed to global trade?

What characteristics of the Indonesian rupiah suggest it could be an outperformer?