Escalating Iran war pushes US dollar up and stock markets down - Cayman Compass
The Iran war’s impact is starting to be felt in Cayman through the US financial markets. The US Dollar Index, which tracks the value of the greenback against a basket of currencies, has increased 1.44% since 2 March. That has a direct impact on Cayman, whose currency is pegged to the US dollar. “So far this looks like a short-term tactical move,” said Robert Whelan, portfolio manager at NCB Capital Markets. “It’s a classic ‘flight to safety’ that you get during periods of geopolitical tension.” But analysts believe the war could be unleashing other factors that could continue to push the dollar up. Energy prices continued to rise on 3 March, with the Brent crude oil benchmark at $81.54 per barrel at time of publication, up 15.25% from $70.75 at market open on 27 Feb. “Rising energy prices are beginning to push inflation expectations higher,” said Richard Maparura, CEO of RF Bank & Trust (Cayman). “As a result, investors are increasingly factoring in that U.S. interest rates may not fal
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