[theold]

Japan's foreign exchange buying, which was repeated two days later on May 1, is likely to have been worth US$40 billion in central bank reserves. 

“The yen remains at the mercy of the US Federal Reserve,” Skylar Koning, a senior macro strategist at TS Lombard, said. “Dollar strength is a destabilising force globally.”

The greenback has appreciated 8% against the yen this year and is 4% stronger on a trade-weighted measure against a basket of major currencies.

Companies and governments who have also borrowed in dollar-denominated debt face punishing debt servicing costs when their local currencies slide against the greenback.

According to one study, a one-point monetary policy tightening shock in the US economy reduces industrial production in advanced economies by 1.5% on average.

The reason is because the USD is the world trading currency.

https://www.thepost.co.nz/world-news/350...ross-globe

[red3]

Huat ah

[Sticw]

All countries will take turn to help pay for US spending starting with the usual yen... No difference from the early days of AFC cos all borrowed USD one way or another, and with the interest rate hike to come, all will be paying for it...