Mitsubishi UFJ Bank: The momentum of the US dollar rebound may be exhausted in the second quarter

Golden Ten Data reported on March 4 that Lee Hardman from Mitsubishi UFJ Bank pointed out in a report that the recent rebound of the US dollar may be short-lived, as the US-Iran conflict is expected to last only weeks rather than months. He stated: "If this forecast is correct, the dollar is likely to peak in the short term and reverse from the second quarter." Hardman believes that due to the United States' energy independence and the decline in expectations for further rate cuts by the Federal Reserve, the conflict has pushed up oil prices and boosted the dollar. However, he noted that as long as energy prices fall back, the Federal Reserve still has room to cut rates in the second half of 2026. In addition, US policy uncertainty may remain at a high level.