Institution: Iran Conflict Supports US Dollar Short-Term Movement

Odaily Planet Daily reports that Monex Europe analysts stated in a report that unless credible signs of de-escalation in the Iran conflict emerge, the US dollar may continue to gain support in the short term. The conflict is driving safe-haven funds into the dollar. The war has led to rising oil prices and reinforced market expectations that the Federal Reserve will maintain its tightening policy longer than previously anticipated, supporting the dollar. However, in the longer term, the market “underestimates the potential easing of US policies once concerns over energy prices begin to subside,” which also means the dollar faces downside risks. (Jin10)