Ghost of 1990s Is Haunting Dollar and Slowing Further Gains

A new dynamic entered the $5.1 trillion currency market in recent days, as the dollar failed to keep pace with a rise in U.S. Treasury yields. One reason: traders are increasingly aware of the example of the period in the Clinton administration when a widening yield advantage didn’t work in the dollar’s favor, says Shusuke Yamada, chief Japan currency and equity strategist at Bank of America Merrill Lynch in Tokyo.