The market bias for USD to WST is bearish.
The anticipated reduction in USD strength is driven by several factors. First, the Federal Reserve is expected to implement multiple rate cuts by mid-2026, which generally weakens the dollar. There is also growing global economic growth and rising commodity prices, which can influence currency performance positively but adds volatility. Additionally, Samoan economic projections suggest stable growth of around 3.2%, which supports the local currency.
In the near term, the USD to WST exchange rate might trade within a range constrained by current highs and recent averages.
An upside risk could arise from unexpected US economic data that strengthens the dollar's outlook, while a downside risk may stem from worsening economic conditions in Samoa, which could negatively influence the value of the WST.
