Geopolitical risks are escalating, and the dollar may become the ultimate winner

By: rootdata|2026/03/02 21:43:30
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According to Jinshi reports, economists at Capital Economics analyze that as the Iranian conflict evolves, global financial markets may be impacted by fluctuations in investor risk appetite.

If the conflict escalates, government bonds may not provide a reliable safe haven, and expectations for monetary easing may be delayed. The dollar may continue to strengthen, mainly benefiting from the termination of interest rate cuts making relative yields favorable for the dollar, as well as the United States' position as a net energy exporter.

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