The USD to WST exchange rate is currently bearish.
The outlook is shaped by several key factors. The recent drop in US unemployment to 4.4% has tempered expectations for aggressive Federal Reserve interest rate cuts, thus supporting USD demand. Conversely, the Central Bank of Samoa's focus on reducing excess liquidity aims to stabilize its economy, potentially supporting the WST. Additionally, the Samoan economy is projected to grow by 3.2%, bolstered by tourism and investments.
Near-term, the USD to WST pair is likely to remain within a stable range, exhibiting low volatility, given its movement around recent 90-day lows.
Upside risks could arise from stronger-than-expected US economic data or geopolitical tensions affecting investor sentiment. On the downside, significant Federal Reserve rate cuts or further economic challenges in Samoa could weaken the USD against the WST.