HomeNewsNewsMore and more central banks are fighting the dollar’s rise

More and more central banks are fighting the dollar’s rise

More and more of the world’s central banks are turning to currency interventions to keep their currencies from weakening. While each central bank is saving its currency, they are all working together to undermine the Dollar’s value by increasing its global supply.

For the last two weeks, Japan has been protecting the yen from further weakening by keeping the USDJPY above 145. At the same time, the Bank of Japan is not changing its ultra-soft monetary policy. Given Japan’s deep pocket of more than 1 trillion US treasuries, this promises to be an extended play, attracting speculators’ interest in buying into the pair on the downside.

The Bank of England reportedly entered the market last week to keep the pound from collapsing. Record lows in the Indian rupee also forced the country’s central bank to intervene in the market. There is little information on China, but there is also a large force there,…

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