Wall Street Journal: Dollar Weakens as Investors Hope for Iran War De-Escalation

“On a trade-weighted basis, the dollar’s wartime rally has now been fully unwound,” Corpay Cross-Border Solutions’s Karl Schamotta writes, adding that the greenback is “a touch weaker” than right before the first U.S.-Israel attacks on Iran on February 28. He says the war in Iran hasn’t boosted the dollar as previous conflicts did. “Erratic American policymaking, persistent questions about Federal Reserve independence, and mounting concern over the country’s fiscal trajectory have all corroded the currency’s standing as the world’s unimpeachable safe haven.” Safe-haven alternatives, however, “remain feeble,” Schamotta says.

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