The current market bias for the USD to WST exchange rate is bearish.
Key drivers include:
- The expected monetary easing from the Federal Reserve, as analysts foresee three rate cuts by mid-2026, weakening the USD.
- Improving global economic growth, paired with rising commodity prices, could add volatility to the USD's performance.
- The projected 3.2% growth in Samoa's economy may help stabilize the WST.
The near-term range anticipates fluctuations around current price levels, with minor movements expected as markets respond to monetary policy shifts.
Upside risks for the USD could stem from stronger-than-expected U.S. economic data, potentially delaying interest rate cuts. Conversely, a downside risk for the WST could arise from ongoing issues related to liquidity and government financial challenges, which may hinder investor confidence.