Powell’s Hike Till Inflation Breaks Makes Dollar the King Trade
- Authorities in Japan, South Korea on guard for more declines
- Emerging currency index set for biggest annual drop since 2008
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The surging dollar is showing there’s only one macro asset worth buying when the Federal Reserve tightens above its long-term neutral rate.
Traders offloaded stocks, bonds and major currencies for a second day after the US central bank raised rates for a fifth time this year. The yen, the biggest Group-of-10 loser, briefly slid past 145 per dollar, prompting Japan’s top currency official Masato Kanda to warn the government may step in.