The dollar looks set to end the week lower against most major currencies after an article today by the WSJ’s often well-informed Fed reporter, Nick Timiraos, suggesting some FOMC officials favour a (somewhat) less aggressive pace of tightening sent previously-surging interest rate expectations into reverse. In addition, apparent intervention by the Japanese authorities propped up the yen in late London and early New York trading hours. At the time of writing, that has put a lid on core long-term government bond yields and provided some support for equities and riskier currencies. The DXY index, which had been rising sharply over the past couple of days, is about 2% lower since before the WSJ article was published.
Asia Drop-In: Join our online Asia briefing on Thursday, 27th October for the latest on China’s Party Congress, yen weakness and regional central bank hawkishness. Register here.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services