Mitsubishi UFJ: If safe-haven demand rises, the US dollar may strengthen further

Derek Halpenny, an analyst at Mitsubishi UFJ, said in a report that the dollar could strengthen further if the scale of capital inflows into safe-haven assets increases due to the conflict in Iran. He expects the dollar to strengthen further if the stock market declines further. In a more severe scenario, if Brent crude oil prices rise from US$110 per barrel to the US$120 to US$160 range, the US dollar index may rise to around 105.