Economics
How Central Banks Gained More Control Over the World's Major Currencies
Globalized trade, more concentrated currency power.
All hail Janet Yellen, queen of the currency markets.
Photographer: Drew Angerer/BloombergThis article is for subscribers only.
The reaction of the world's major currencies to potential changes in monetary policy hasn't been this strong in 15 years, according to strategists at HSBC.
Global equity markets have started 2016 with a thud amid continued weakness in China's currency, an echo of August's market meltdown, with the People's Bank of China reducing the yuan fixing rate to its lowest level since 2011. But exchange rate potency isn't just for central bankers who operate in economies with currency pegs, according to HSBC's strategists.