Dollar Breaks From Rates as Yen Shock Triggers Capitulation

Kit Juckes, Chief FX Strategist at Societe Generale, discusses the balance between US political pressure and Japan’s fiscal constraints. While the dollar decline has been punchy and one-sided, the move was already underway before last Friday’s speculation of a USD/JPY rate check. The greenback has fallen across the board, with NOK, AUD and NZD gaining the most ground so far this month. Yen strength ultimately accelerated the move, turning what had been steady dollar selling into an avalanche into the weeken ...