Barclays: Middle East Conflict Fails to Eliminate Dollar Risk Premium

Golden Finance reports that, according to Jintiao, analysts at Barclays Bank stated in a report that although the Middle East conflict has driven up energy prices and supported the US dollar exchange rate, the dollar’s risk premium has not decreased. The market still demands higher premiums for dollar assets to compensate for increased US policy uncertainty. Analysts believe that it is reasonable to expect the dollar to weaken somewhat in the short term.

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