The Fed tries to ease dollar-funding crunch
There has been talk about this all week after the initial swap lines failed to stem the tide. Some of the moves today in FX were outrageous.
The euro has spiked 50 pips higher on this.
The lines are going in with:
- New Zealand
- South Korea
Some are for $60B, others are for $30B.
What's ominous is that the Fed already had swap lines in with the Bank of England and the pound crumbled anyway.
Eventually though, I think this works.