USD/WST Outlook: The outlook is likely to decrease as the rate is currently below its recent average and near recent lows, weighed down by multiple factors.
Key drivers:
- Rate gap: The Federal Reserve's expected rate cuts this year create pressure on the dollar compared to the Central Bank of Samoa, which is maintaining its policy stance.
- Geopolitical tensions: Ongoing conflicts and uncertainty surrounding trade policies in the US are contributing to a weaker dollar.
- Economic growth: The Central Bank of Samoa's forecast of 5% economic growth for 2025/2026 provides a positive backdrop for the Samoan tālā.
Range: Movement is likely to hold within the recent range, as the rate has remained stable with minor fluctuations.
What could change it:
- An unexpected escalation in US geopolitical events could provide a short-term boost to the dollar.
- A significant shift in Samoa's economic outlook or tighter monetary policies could strengthen the tālā against the dollar.
