US Dollar Has Modest Upside as Risks Recalibrate – OCBC

The US Dollar softened slightly as global risk appetite improved, driven by easing geopolitical tensions and a rebound in tech stocks. According to OCBC currency strategist Sim Moh Siong, the dollar retains limited upside scope as market participants reassess risk factors.

Despite the recent pullback, Siong suggests that the currency's downside is contained, with scope for modest gains if risk sentiment stabilizes. The assessment comes amid a broader recalibration of geopolitical and macroeconomic risks that had previously weighed on risk assets.