USD/WST Outlook:
Likely to decrease, as the rate is below its recent average and near recent lows.
Key drivers:
• Rate gap: The Federal Reserve's decision to hold interest rates steady weighs on the USD, while the Central Bank of Samoa focuses on liquidity reduction to support WST.
• Risk/commodities: With recent global de-dollarization efforts, there's ongoing pressure on the USD's dominance, impacting its relative value against the WST.
• One macro factor: The Central Bank of Samoa forecasts 3.2% economic growth for the fiscal year, supporting the WST amid a weaker USD.
Range:
The USD to WST rate is likely to drift within its recent stable range.
What could change it:
• Upside risk: Any unexpected improvement in U.S. economic data could increase demand for the USD.
• Downside risk: Further geopolitical tensions affecting U.S. assets could press the USD lower, worsening the exchange rate.