Dollar strength is causing some problems, especially for Japan, China and many emerging markets, ING’s FX analysts note.

Non-USD currencies to remain under pressure this year

“USD/JPY is now close to the 158/160 area, where Japanese authorities sold $35bn in July last year. Chinese authorities continue to resist renminbi depreciation, and in Brazil, the local bank has been drawn into a heavy bout of FX intervention too.”

“Unless US trading partners are prepared to offer some sizable fiscal stimulus to support domestic demand as an offset to a more difficult export environment, expect non-USD currencies to remain under pressure this year.”