USD: Safe-haven flows support strength – OCBC

OCBC strategists note the Dollar has strengthened on safe-haven demand, positioning unwind and the divide between energy exporters and importers. They stress that the United States’ status as a net energy exporter and largest LNG exporter since early 2026 underpins USD resilience. Position-squaring from previously net short USD exposure is also cited as a key driver in current geopolitical uncertainty.

Exporter status underpins Dollar resilience

"The USD strengthened on safe-haven demand and positioning unwind, with energy volatility magnifying the exporter-importer divide."

"FX markets responded in classic risk-off fashion, favouring safe-haven currencies and differentiating sharply between energy exporters and importers – broadly to the USD’s advantage."

"The USD continues to benefit from the US’s position as a net energy exporter since 2019 and its status as the world’s largest LNG exporter since early 2026, surpassing Qatar and Australia."

"USD strength also reflects position-squaring, as markets had entered this episode with net short USD exposure and are now unwinding risk amid heightened geopolitical uncertainty."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)