USD Index Set to Stay Firm as Energy Spike Supports Fed Hawks – ING

ING’s Chris Turner notes that the recent rise in oil prices and heightened Gulf tensions have triggered a stronger reaction in interest rates than in foreign exchange markets. With Brent crude trading near $80, the Fed's hawkish stance receives additional support, reinforcing expectations of tighter monetary policy.

The US dollar is expected to remain resilient against low-yielding currencies. Meanwhile, emerging-market carry trades are under pressure as the energy-driven rate environment challenges risk appetite.