Currencies
Yen’s Relentless Drop Showcases Fed’s Grip on Global Markets
- Japanese currency touches 38-year low as dollar climbs higher
- Yen intervention efforts seen failing, ‘all about the Fed’
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A grim reality is setting in for Japanese authorities as the yen plunges through milestone levels in rapid succession: The slide won’t stop until the Federal Reserve relents on its higher-for-longer policy path. And they have no control over that.
It’s a realization shared by global investors as they parse the way still-high US borrowing costs buoy the dollar — and the impact that has on the rest of the world. In the $7.5-trillion-a-day market for global currencies, the yen’s relentless rout offers an extreme manifestation of US financial dominance.