The US dollar is showing a softer bias as pro-risk sentiment drives investors toward higher-yielding and riskier assets, ING said in an analysis released this week. The Dutch multinational banking and financial services corporation attributed the move to improving global growth prospects, stabilizing commodity prices and expectations that the Federal Reserve may pause its rate hikes, reducing the dollar’s yield advantage. The dollar may weaken against major currencies including the euro, British pound, Australian dollar and Canadian dollar, while the dollar index (DXY), a measure of the greenback against major currencies, faces resistance as risk appetite improves. A weaker dollar can support US exporters, lift the value of foreign earnings for multinational companies and aid emerging-market currencies, but it can also raise import costs and add to inflation pressure. Investors will watch US inflation, employment and consumer sentiment data, Federal Reserve signals, trade tensions and geopolitical developments. Unexpected inflation, a more hawkish Federal Reserve stance, falling global stock markets or a flight to safety could restore demand for the dollar. ING’s assessment suggests the softer bias may persist in the near term, but its durability depends on economic data, central-bank actions and geopolitical events.