The world's largest asset management companyBlackRockThe dollar is being shorted because the unprecedented fiscal and monetary stimulus is expected to prolong its downward trend, regardless of who wins the US election.

Neeraj Seth, BlackRock's head of Asian credit in Singapore, said that the company holds “moderate” short positions on the US dollar against currencies such as the renminbi, the Indian rupee, and the Indonesian rupee, and believes these three Asian countries are best able to benefit from the weakening US dollar because investors seek higher-yielding assets and growth.

Seth said, “My basic prediction is that the weaker dollar will continue for at least one to three years, and this will not change. Regardless of the election results, some policy actions have already taken place.”

With the US election one week away, BlackRock joinedGoldman SachsundUBSWait for the ranks of institutions that are bearish on the US dollar. On Monday, BlackRock downgraded US Treasury bonds because the Democratic Party was expected to win big and lead to significant fiscal expansion.

Seth said that the declining trend of the US dollar may be “temporarily suspended” due to the election results, but in the long run, the weak trend of the US dollar may be deeply rooted. He said, “From a fundamental point of view, the US dollar is still expensive. I don't think this trend will be reversed or changed by the election.”