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Slumping U.S. Dollar Creates Problem for Central Banks Elsewhere

Currencies’ strength creates headwinds for economic recovery
Central banks may step in verbally to curtail ascents

By

Greg Ritchie and

January 6, 2021, 5:16 PM UTC

The euro and yen are flirting with valuations unseen for years as dollar weakness creates headaches for policy makers the world over.

Granted, the path higher may be rocky, as seen with the greenback paring its decline Wednesday morning in New York on haven demand after the New York Stock Exchange reversed course and said it still plans to delist three major Chinese companies.