Fed Effect Stirs Global FX Moves as Mighty Dollar Runs Rampant
The dollar is steamrolling currencies from Japan to South Africa and the UK as bond market bets on higher-for-longer US rates gave fresh fuel to the greenback’s rally, triggering a vocal pushback from officials in various countries.
The yen dropped to a fresh 24-year low versus the greenback and speculation is swirling about the prospects for direct intervention, while the euro and British pound have been battered amid Europe’s escalating energy crisis. South Korea’s won weakened to levels not seen since 2009 and the rand was the next-worst emerging-market performer on the day. China’s yuan, meanwhile, was within a whisker of cracking the psychological 7 barrier.