Dollar Strength Fades as Investors Shift Focus

The U.S. dollar's near-term outlook is positive due to expectations of Federal Reserve rate hikes later this year and ongoing uncertainty between Washington and Tehran.

This has made the greenback a safe-haven asset, boosting its value.

However, some experts warn that growing investor sentiment behind the 'Sell America' trade could prompt investors to reassess their appetite for the dollar, creating headwinds for its longer-term outlook.

Rajeev De Mello of Gama Asset Management and Steve Brice of Standard Chartered have expressed concerns about policy uncertainty affecting the dollar's value.