Forex strategists at Goldman Sachs see a case for the Fed and Treasury to intervene in the US Dollar:
- Should dollar appreciation continue, we would see a reasonably strong case for targeted intervention
- and think there is a rising probability that authorities will take this step
- If swap lines and (purchases of bonds) prove insufficient, we think Fed and Treasury should and will consider traditional FX intervention to stabilise the dollar
(bolding mine)
There has been a surge of demand in past weeks for USDs, the US dollar is up at its quickest since 2008.
DXY, US dollar index snapshot
