Dollar Could Remain Strong Even if Conflict Eases
The US dollar is expected to still have room to strengthen in the coming months, even if tensions in the Middle East begin to ease, according to Kit Juckes of Societe Generale. The dollar is supported by its dual role as a safe haven asset and the US's position as an energy exporter amidst surging oil prices.
Juckes believes the divergence in growth prospects also strengthens the dollar's narrative. US growth expectations this year have reportedly been revised upward to 2.5%, compared to projections for the eurozone of 1.2% and Japan of 0.8%. This difference, he believes, could keep the dollar strong, although it may experience a short-term correction if the conflict slows.
He added that if tensions persist and energy prices remain high for longer, the dollar has the potential to strengthen further. In recent trading, the DXY rose 0.4% to 99.634.
Source: Newsmaker.id