The dollar index (DXY00) today fell to a new 4-month low and is down -0.61%.
The dollar is being undercut by speculation that the US might coordinate FX intervention with Japan to boost the yen, which would dovetail with Mr. Trump’s apparent view that a weak dollar is good for the US as a stimulus to US exports. US authorities reportedly contacted market participants last Friday to check dollar/yen prices, a possible precursor to intervention.
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The dollar is also being undercut as foreign investors pull capital from the US due to political risks. The markets remain nervous about Greenland, even though Mr. Trump said last Wednesday that there was a framework agreement for increased US access to Greenland and that he would not invade Greenland by…
