Without any indication of official cooperation, nations are developing defences against the all-powerful dollar on their own. fed by the Fed's aggressive tactics, US economic expansion, and investors looking for a safe haven in the market
The dollar is strengthening more than it has in decades against both large and small counterparts. In 1985, it achieved its highest level against the euro and the pound in 20 years.
Japan is the third major nation to tap its dollar reserves, joining Chile and India as the most recent big nations to do so.
Although concerns about the currency market bring to mind the 1980s, the solutions do not. With the Plaza Accord, the major economies of the world decided to combat dollar strength in 1985.
The multi-decade trend toward greater global integration is reversing, and national economic interests are separating.
According to Vanda Research analyst Viraj Patel, there is "close to 0% probability" that Treasury will take action to devalue the dollar, even though a new Plaza Accord would require US government participation.