According to Jinshi Data, Maybank Research analysts said that the dollar's strength may soon resume at the end of July, but volatility may also increase given that the uncertainty of the US election has a greater impact on the market.
Maybank said election concerns could further boost the dollar index in the third quarter, even if U.S. economic data is more favorable and supports hopes that the Federal Reserve will start cutting interest rates in September.
The possibility of a Trump win and a more inflationary environment could better support higher yields and the dollar index, Maybank analysts added.
