Dollar Plummets Amidst Fed Rate Check, Investors Flock to Gold

The U.S. dollar experienced a significant decline starting late Friday after the New York Federal Reserve conducted a rare rate check with currency traders regarding the dollar-Japanese yen exchange rate, according to Fortune. The request for the check reportedly came from the U.S. Treasury.

The purpose of the rate check suggests the U.S. government may be considering coordinated action with the Bank of Japan to bolster the yen. As a result, traders began selling the dollar, leading to a drop of more than 2.26% against a basket of international currencies over the past five days, a notably steep decline given the dollar's global significance. Over a single day, the dollar lost 0.46%. The yen has risen more than 3% against the dollar during the same period. The situation is ongoing, and the full impact of the rate check remains to be seen.