USD Market Overview
Updated 28 Jul 2026 • 23:45 GMT
Recent commentary highlights fluctuations in the USD driven by geopolitical tensions and energy market dynamics. MUFG Research notes that even after weaker US inflation data last week, the dollar's depreciation was temporary due to rising energy prices. The USD/JPY reached a high of 163.99, reflecting supportive conditions for the USD amidst global developments. Meanwhile, J.P. Morgan maintains a bullish stance on the USD, with support from stable growth and persistent inflation, expecting the dollar to remain strong through the end of the year.
Key watchpoints:
- Impact of geopolitical developments, especially in the Middle East, on the USD.
- Energy price trends and their influence on USD performance.
- Upcoming US economic data, particularly inflation metrics, and potential Fed policy responses.
The dinar has been facing a period of volatility due to the rise and fall in oil and gas prices, which are the main source of foreign currency for Algeria, as well as the heavy state subsidies and a high level of public debt.