Deutsche Bank: The Strengthening of the Dollar Driven by Non-Safe-Haven Attributes

ChainCatcher news, Deutsche Bank analyst Thu Lan Nguyen pointed out in a report that the recent appreciation of the dollar due to the Israel-Iran conflict may primarily stem from the rebound in oil prices rather than its safe-haven currency role. The dollar benefits from rising oil prices, as this improves the ratio of export to import prices, i.e., the U.S. trade conditions. Thanks to technological breakthroughs from the shale oil revolution, the U.S. has now become one of the largest crude oil producers in the world.

It is worth noting that the dollar did not show a broad strengthening trend last Friday; instead, it recorded declines against the Canadian dollar and Norwegian krone, which are more dependent on oil economies. Analysts emphasized that this phenomenon precisely explains why, as oil prices retraced some of last Friday's gains, the dollar index also experienced a pullback.