Savary: Dollar Dominance to Remain for Decades

• Yen intervention is primarily aimed at injecting volatility to deter carry trades, not targeting specific exchange rate levels.
• The US Dollar is expected to remain the dominant global currency for decades, but a marginal deterioration is anticipated as authorities seek diversification.
• Smaller currencies (AUD, CAD, SGD, KRW) and gold are identified as potential beneficiaries of this diversification and as hedges against geopolitical risks and a peak in US real rates.

The discussion focuses on the Japanese Yen's intervention strategy, noting it's driven by volatility rather than specific levels, aiming to deter carry trades. While the US Dollar's dominance is expected to persist for decades, there's an anticipated marginal shift towards diversification into other currencies like the Euro, Australian, Canadian, Singaporean, and Korean dollars. Gold is highlighted as an increasingly attractive hedge against geopolitical tensions and a beneficiary of potential peaks in US real rates.