Middle East Conflict Fails to Erase Dollar's Risk Premium -- Market Talk

Dow Jones03-24

1233 GMT - The dollar is currently supported by elevated energy prices stemming from the Middle East conflict but its risk premium hasn't declined, Barclays analysts say in a note. Markets continue to demand a higher premium for dollar exposure as compensation for increased U.S. policy uncertainty, they say. This hasn't changed since the conflict began even as the dollar benefits from America's energy independence. "If the premium has not been eliminated during this favorable time for the dollar, then it should remain sticky once conditions normalize too." It is therefore reasonable to expect a degree of dollar softness in the near term, they say. The DXY dollar index rises 0.4% to 99.365. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

March 24, 2026 08:33 ET (12:33 GMT)

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