Sustained Oil Price Shock Would Likely Weaken Dollar -- Market Talk

Dow Jones03-25 21:52

1352 GMT - A sustained oil-price shock resulting from the Iran war would probably prove ultimately dollar negative, TD Securities strategists say in a note. America's energy independence should delay the impact on the U.S. compared to the EU and Asia, allowing growth and relative rate differentials to temporarily move in the dollar's favor, they say. "Eventually even the U.S. and the Fed will not be spared from the growth and macro implications of an extended disruption to energy markets." If the Fed continues to cut rates at the end of this year, the dollar should weaken over the medium term, they say. Concerns about U.S. deficits could also rise on the back of increased defense spending. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

March 25, 2026 09:52 ET (13:52 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment