DBS Group Research’s Philip Wee argues that the US Dollar (USD) is losing momentum as markets reassess United States (US)-Japan intervention, shifting Bank of Japan (BoJ) and Federal Reserve (Fed) expectations, and rising US fiscal risks. He highlights how higher long-term US yields now reflect fiscal concerns rather than growth, and warns that this may weaken the traditional link between higher US yields and a stronger USD.
Fiscal risks and policy shifts weigh on USD
“Markets continued to view the joint US-Japan interventions largely through the lens of Tokyo’s struggle to arrest the JPY’s decline, paying insufficient attention to the…
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