TLDR: Our currency fell to a fresh two-and-a-half-year low overnight after Japan was forced to take the unprecedented step in modern times of intervening to stop the yen from falling. Japan’s move is the first in a potentially damaging series of ‘reverse currency wars’ where countries fight to stop importing inflation via their currencies.
This is all because of the US dollar’s strength as the US Federal Reserve hikes interest rates to kill off inflation. In the process, the United States is exporting its inflation and unleashing massive financial instability in those emerging and other economies who borrow in US dollars. Stay buckled up. See below for more on what it means.
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Elsewhere in the news overnight: