1531 GMT - The dollar's recent appreciation is driven by the potential for an improved U.S. terms of trade as oil prices rise due to the Middle East conflict, Commerzbank's Michael Pfister says in a note. The U.S. is a net oil exporter while the eurozone is a net importer. Higher oil prices therefore boost the U.S. terms of trade as U.S. export prices rise relative to those in the eurozone, giving Americans more money at their disposal to spend. With U.S. energy-intensive industries more protected than Europe's, growth is more resilient. The "decisive factor" is how long the oil prices increase lasts. If the conflict ends sooner than expected, the euro will recover versus the dollar, he says. The euro falls 0.5% to $1.1574. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
March 05, 2026 10:31 ET (15:31 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.