Mitsubishi UFJ Bank: U.S. Dollar Supported by High Treasury Yields and Middle East Tensions

According to Lloyd Chan, senior foreign exchange analyst at Mitsubishi UFJ Bank, on July 28, the U.S. dollar is likely to gain short-term support driven by elevated U.S. Treasury yields and continued Middle East tensions. Chan noted that the Federal Reserve's decision this week could serve as a key market catalyst.

While no policy change is expected, market focus will remain on Fed guidance regarding whether policymakers still lean toward tightening, Chan said.