Dollar Takes Helm of Global Markets After Worst Week Since 2008
- Reports showing slower growth help keep Fed policy on hold
- Overseas stocks fall while commodities, EM currencies rally
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The dollar is plunging so far, so fast, its shockwaves are reverberating far beyond the $5.3-trillion-a-day foreign-exchange market.
The greenback plunged the most this week since 2008 versus the yen after economic reports trailed forecasts, damping the outlook for growth as Federal Reserve policy makers await evidence needed to justify more interest-rate increases. The U.S. currency has eroded more than half its 9 percent surge last year, with one measure of dollar momentum approaching a level that indicates to some analysts that it is oversold and set to reverse direction.