HSBC strategist Daragh Maher said in a note that if high energy prices underpin
market expectations of rate hikes across the G-10, the US dollar could
strengthen. He added that currency moves would depend more on each economy’s
sensitivity to energy-price shocks than on interest-rate expectations; the US’s
relative energy self-sufficiency and resilience versus import-dependent
economies, notably the euro area and the UK, would likely favor the dollar in
that scenario.
