UniCredit: If the Iran War Ends, the US Dollar May Fall Further

According to Golden Ten Data on April 8, UniCredit Bank analyst Roberto Mialich stated in a report that if the Iran war ends or becomes a risk factor for the Trump administration, the US dollar may decline further. He pointed out that if risk appetite eases, the US dollar’s safe haven role would mean it loses support, as seen after Trump announced a two-week ceasefire. He said, “Once the conflict finally ends, the market will refocus on the factors that weighed on the US dollar before the outbreak of the war.” If the US gets involved in a prolonged conflict with no clear exit strategy, the US dollar could also weaken. He noted this could trigger a new round of concerns about the credibility of US economic policy and the dollar itself.