© Reuters UBS: How does the dollar benefit from market volatility?
Arabictrader.com – Estimated declining index dollar It has risen about 7.5% since last September, but over the longer term, it looks like the dollar could see a significant upside; Despite the change in market attitude towards US Fed policies, according to UBS economists.
The bank’s analysts clarified their expectations for the US dollar’s moves within the next year, as they said the US Federal Reserve could abandon its monetary tightening policy, and thus the US could pull back.
But on the other hand, the dollar could benefit from investors’ reluctance to take risks and growing fears about the global economy entering recession, leading to a sharp rally in the dollar in the coming months as it represents a safe haven.
And UBS economists continued that US inflation could decline more lightly than investors speculate, taking into account that continued high inflation translates into growing concerns about continued tight monetary tightening. , and this supports the dollar.
