Potential Dollar Decline Amid Iran Conflict and Trump Administration Risks
Analysts from UniCredit Bank, led by Roberto Mialich, suggest that the U.S. dollar could face further declines if the conflict in Iran concludes or becomes a risk factor for the Trump administration. According to Odaily, Mialich highlights that the dollar's role as a safe haven could diminish if risk appetite improves, as observed after U.S. President Donald Trump announced a two-week ceasefire.
Mialich notes that once the conflict ends, markets may refocus on factors that previously pressured the dollar before the war. Additionally, if the U.S. becomes embroiled in a prolonged conflict without a clear exit strategy, the dollar might weaken further. This situation could lead to renewed concerns about U.S. economic policy and the credibility of the dollar.