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The dollar is tumbling as currency traders unwind wagers on ever-widening gaps between the world’s major central banks. With the Bank of Japan inching closer to a shift in policy direction, the European Central Bank making hawkish noises, and an energy price cap reducing pressure on the Bank of England, yield differentials are moving in a more synchronized fashion than in recent months – and evidence of a slowing in the Chinese economy is helping reduce the greenback’s safe-haven appeal. The pound is recovering after new Prime Minister Liz Truss announced plans to hold average household energy bills at no...

The dollar is continuing its untrammelled rise this morning, crushing its developed- and emerging-market peers alike as the US reprises its role as a rock in a sea of economic troubles. As Europe faces an energy shock, China slows, and falling commodity prices weigh on emerging market growth prospects, the American economy – with its voracious consumers, incredibly profitable corporate sector, and aggressively hawkish central bank – is drawing financial flows from the rest of the world, further widening performance gaps. The yen is trading near new post-1998 lows, ignoring fresh intervention warnings from the government. Chief Cabinet Secretary Hirokazu...