A grim reality is setting in for Japanese authorities as the yen plunges through milestone levels in rapid succession: The slide won’t stop until the US Federal Reserve relents on its higher-for-longer policy path. And they have no control over that.

It’s a realisation shared by global investors as they parse the way still-high US borrowing costs that buoy the dollar – and the impact that has on the rest of the world. In the $US7.5-trillion-a-day market ($11.3 trillion) for global currencies, the yen’s relentless rout offers an extreme manifestation of US financial dominance.

Bloomberg