Mitsubishi UFJ Bank: Dollar rebound momentum may fade in the second quarter

CycleProphet · 2026-03-04T13:38:55+00:00

Lee Hardman of Mitsubishi UFJ Bank believes that the recent rebound of the US dollar may be short-lived, and expects the US-Iran conflict will not last too long. He pointed out that if energy prices decline, the Federal Reserve still has room to cut interest rates, but policy uncertainty will persist.

CycleProphet

2026-03-04 13:38:55

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Deep Tide TechFlow News, on March 4th, according to Jin10 Data, Mitsubishi UFJ Bank’s Lee Hardman stated in a report that the recent rebound of the US dollar may be only temporary, as the US-Iran conflict is expected to last only a few weeks rather than months. He said, “If this forecast is correct, the US dollar is likely to peak in the short term and reverse starting from the second quarter.” Hardman believes that due to US energy independence and the declining expectations of further Fed rate cuts, the conflict has driven up oil prices and boosted the dollar. However, he pointed out that as long as energy prices fall back, the Fed still has room to cut rates in the second half of 2026. Additionally, US policy uncertainty may remain elevated.

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