Mitsubishi UFJ: If risk aversion increases, the US dollar may continue to rise

Golden Finance reports, March 27. Mitsubishi UFJ’s analyst Derek Halpenny said in a report that if the scale of capital inflows into safe-haven assets increases due to the Iran conflict, the U.S. dollar could strengthen further. He said, “If we are about to enter a period of higher risk aversion, and the stock market sees a larger decline, then we expect the dollar to strengthen further.” In this situation, trade conditions and yield-rate dynamics are unlikely to have much impact on the direction of the currency. He said that in a more severe scenario, if the price of Brent crude oil rises from the current $110 per barrel to a range of $120 to $160, and the stock market is hit harder, the U.S. Dollar Index could rise to around 105.