Mitsubishi UFJ: Mild appreciation of the US dollar may reflect underlying economic concerns

Golden Ten Data reported on April 7 that Derek Halpenny, a foreign exchange analyst at Mitsubishi UFJ Bank, stated in a report that the US dollar's mild reaction to the surge in energy prices highlights that, compared with the inflation shock in 2022, the current fundamentals of the US economy are weaker. He pointed out that since the outbreak of the conflict, although crude oil prices have risen by nearly 60%, the US Dollar Index has strengthened by only about 2.5%, and the response of the forex market is milder than past data would suggest. Although the United States is a net exporter of oil, the current price shock may have a greater impact on the US economy than expected, undermining business confidence and employment.