Still a Case for Reverse Currency Wars

I wrote this article in May and it is worth reposting now as the logic of what I expressed then is even more relevant today. However, to change the current direction of the dollar it would probably take coordinated intervention or some other actions by major central banks to reverse its current dominance.Japanese officials have taken to verbal intervention to stem USDJPYs surge to 24-year highs. However, history has shown that unilateral action has diminishing results the more times it is employed unless accompanied by other policy actions (i.e. in this case raising interest rates or keeping a lid on JGB yieldsThe main issue for central banks, which have been frontloading outsized rate hikes, is that further currency deprec