UBS has suggested that investors should consider diversifying into currencies other than the US dollar, such as the British pound (GBP) and the Australian dollar (AUD), in order to take advantage of potential further strength in the US dollar.

UBS believes that the dollar is currently overvalued, despite recent gains driven by changing expectations surrounding Federal Reserve and US government policies.

While UBS does not anticipate a significant decline in the dollar in the near future, it highlights opportunities for investors to shift towards currencies that may perform better as global monetary conditions change. The GBP and AUD are specifically mentioned as top choices, as they have the potential to thrive in the evolving economic landscape.