The reported view cites Middle East ceasefire expectations and yen intervention risk as key headwinds for bearish dollar positioning.
MUFG reportedly judges the U.S. dollar to be undervalued against eight of nine G10 currencies (major developed-market currencies). The reported call suggests the bank sees limited room for further broad dollar weakness, with expectations for a Middle East ceasefire and the risk of yen intervention (official currency-market action) identified as key headwinds for bearish dollar views.