Dollar's Recent Surge May Be Short-Lived, Analyst Suggests

Mitsubishi UFJ Bank's Lee Hardman has indicated that the recent rise in the dollar might be temporary. According to Odaily, Hardman suggests that the conflict between the U.S. and Iran is expected to last weeks rather than months. He stated that if this prediction holds, the dollar is likely to peak in the short term and reverse from the second quarter. Hardman believes that the conflict has driven up oil prices and boosted the dollar due to the U.S.'s energy independence and a reduced expectation of further Federal Reserve rate cuts. However, he noted that as long as energy prices decline, there remains room for the Federal Reserve to cut rates in the latter half of 2026. Additionally, U.S. policy uncertainty is likely to remain high.