Market Briefing: Dollar weakens as year-end rebalancing begins
Risk-sensitive currencies are moving higher and the dollar is under pressure as traders position for a more stable – and less divergent – Federal Reserve in 2023. With growth gaps narrowing and the US tightening cycle reaching its logical conclusion as other central banks catch up, bets against American exceptionalism are growing in scale in the run-up to year end. Beijing’s crackdown on protesters continued overnight, with security officials pledging to take action against “hostile forces” threatening the state – but health authorities said they would ramp up vaccination of older citizens, addressing a significant hurdle to reopening the economy....