"The U.S. dollar has been in relative freefall since late Friday after it emerged that the New York Federal Reserve had conducted a rare " rate check" with currency traders on the dollar/Japanese yen exchange rate.The purpose of the move implies that the U.S. Federal Reserve may be considering coordinated action with the Bank of Japan to support the latter's currency."
""It used to be the case that any eruption of geopolitical tension tended to rally the world around the U.S. dollar. That's because the U.S.-despite its role as guarantor of the old order and its obligation to join the fights-was still seen as the safest and most accessible redoubt or haven for global 'flight capital', and because it had a history of being relatively unscathed (territorially) from the conflicts it itself participated in or enjoined,""
The New York Federal Reserve conducted a rare 'rate check' with currency traders on the dollar/yen exchange, implying possible coordinated support with the Bank of Japan. Traders sold dollars aggressively, sending the dollar down about 2.26% versus a standard basket over five days and down 0.46% in the last day. The yen rallied more than 3% against the dollar, and the Nikkei 225 fell 1.79%, reflecting concerns about yen assets. Gold surged past $5,000 per troy ounce, reinforcing an anti-dollar narrative as investors seek alternatives. Historical safe-haven demand for the U.S. dollar has shifted toward precious metals and defense stocks amid perceived U.S. political volatility, according to Macquarie's Thierry Wizman.
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