Soaring US Dollar Raises Alarm as China, Japan Escalate FX Pushback
- Bloomberg Asia FX gauge heads toward lowest level in 10 months
- Officials are pushing back with threats of FX intervention
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Authorities in China and Japan are stepping up efforts to defend their currencies against a surging dollar that threatens to fan inflationary pressures.
Japan on Wednesday issued its strongest warning in weeks against rapid declines in the yen, with its top currency official saying the nation is ready to take action amid speculative market moves. Shortly after, China’s central bank offered the most forceful guidance on record with its daily reference rate for the yuan, as the managed currency weakened to a level unseen since 2007.