Structural challenges continue to affect the US dollar

Currency Preferences and US Dollar Outlook

The Chief Investment Office currently prefers currencies such as the Australian dollar, New Zealand dollar, Norwegian krone, Chinese yuan, and selected emerging market carry currencies. In the short term, the US dollar is expected to show further strength.

Following the recent escalation in tensions between the US and Iran, the US dollar has gained momentum, supported by rising oil and gas prices. The DXY index has advanced by 2% in March. If energy prices continue to climb significantly, the EURUSD pair could retreat to the 1.10–1.12 range.

Additionally, robust economic data from the US has contributed to the dollar’s resilience. However, there are still long-term challenges facing the US dollar.