Mitsubishi UFJ: If the Federal Reserve emphasizes inflation risks, the US dollar may rise

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ME News Report, April 29 (UTC+8), Mitsubishi UFJ Financial Group bank analyst Derek Harpenny stated in a report that if the Federal Reserve acknowledges that Iran war raising energy prices could lead to rising inflation and shows a “hawkish” stance, the dollar could rise. He pointed out that this rate decision might be the last meeting during Chairman Powell’s tenure at the Federal Reserve, and he may emphasize at the press conference that risks to price stability are accumulating. This could lead to a surge in the front end of the U.S. yield curve and reinforce initial signs of improved demand for the dollar. Harpenny said that risks of the euro weakening against the dollar and the dollar strengthening against the yen are mounting. (Source: Jin10)

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