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ING's Chris Turner argues that the US dollar's recent strength following the Iran attack is justified and likely to continue. He attributes this to the US's energy independence compared to Europe and Asia, which remain vulnerable to rising oil and natural gas prices. Turner warns that higher energy costs could hurt fossil fuel importers, creating economic pressure that favors the dollar. For markets, this dynamic supports the DXY index, which measures the dollar's strength against major currencies. Traders should monitor oil price movements and central bank policy responses, as energy shocks often trigger monetary policy adjustments. The Fed's potential rate decisions and inflation trajectory will be critical in determining the dollar's long-term trajectory, especially as global energy markets remain volatile.
