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OCBC strategists highlight that the US Dollar has gained strength due to safe-haven demand, unwinding of speculative positions, and diverging economic conditions between energy exporters and importers. They emphasize that the US's transition to a net energy exporter and its status as the largest LNG exporter since early 2026 are critical factors underpinning the Dollar's resilience. This dynamic reflects broader shifts in global energy markets and geopolitical risk perceptions. For markets, the Dollar's safe-haven appeal remains a key driver amid ongoing macroeconomic uncertainties. Traders should monitor energy price volatility and central bank policies, as these will influence USD flows. The energy exporter/importer divide also creates currency divergence, with emerging market currencies facing pressure against the Dollar. Looking ahead, investors should watch developments in US energy production and LNG export capacity, which could solidify USD's dominance. Additionally, geopolitical tensions and inflation trends will shape risk appetite, impacting Dollar demand. Key assets to track include USD crosses and energy-linked currencies.
