UOB: Dollar May Decline Further if Iran War Ends

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On April 8, UOB analyst Roberto Mialich stated in a report that if the Iran war ends or becomes a risk factor for the Trump administration, the dollar may decline further. He pointed out that if risk appetite improves, the dollar’s safe-haven role will lose support, as seen after Trump’s announcement of a two-week ceasefire. He said, ‘Once the conflict ultimately ends, the market will refocus on the factors that suppressed the dollar before the outbreak of war.’ If the U.S. becomes embroiled in a prolonged conflict without a clear exit strategy, the dollar may also weaken. He noted that this could trigger a new wave of concerns regarding U.S. economic policy and the dollar’s credibility.

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