Bank of America: Maintains bearish view on the US dollar in the medium term

PANews reported on March 21 that, according to Jinshi, Bank of America discussed the outlook for the US dollar and maintained its bearish view in the medium term. The bank stated, "Since the outbreak of the Iran war, the US dollar has unsurprisingly appreciated against other G10 currencies, although the overall appreciation has not been significant. Until the situation becomes clearer, oil prices and major risks will continue to dominate the foreign exchange market."

Meanwhile, central bank interest rate forecasts for most G10 countries have been raised, which has somewhat curbed the appreciation of the dollar,” Bank of America noted. Bank of America further pointed out that although relative interest rates have not been a major driver of the foreign exchange market during this period, this situation may change as the impact of the war on the real economy gradually becomes apparent. “While we maintain a long-term bearish view on the dollar, upside risks to the dollar may dominate as the war continues,” Bank of America added.