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Global dollar crunch appears over as central banks rely less on Fed backstop

(Reuters) - A global crunch for U.S. dollars that was a hallmark of the early moments of the coronavirus crisis appears to have passed, the latest milestone in a remarkable turnaround in financial conditions engineered by the Federal Reserve and other top central banks.

Data from the Fed on Thursday showed its peer banks around the world this week tapped it for the fewest dollars in nearly three months, and it was the main factor driving a surprise reduction in the Fed's $7 trillion balance sheet - the first since February and the largest since the waning days of the financial crisis more than a decade ago.