If the dollar will continue to weaken on news from China and uneven recovery in other countries, the plans of Japan and the European Union to weaken their currencies will fall and they will turn on in game currency, according to Bloomberg.
MOSCOW, 16 Jan. In the near future could spark a “global currency war” and strengthening of the yen and the Euro that could trigger an intensification of the policy of monetary stimulus in Japan and Europe, according to Bloomberg.
This week the yen strengthened to a record against the dollar for the third time over the past month and the Euro rose against the majority (11 of 16) of major currencies, the article says.
Discrepancy of growth of the US economy and their monetary policy with the rest of the world declined amid signs that the U.S. economy cannot avoid the impact of the slowdown of the Chinese economy and the uneven recovery of the economies of other countries. All this affects the dollar and leads to the fact that the plans of the Central banks of Japan and the European Union to weaken their currencies can fall, says the Agency.
Against the backdrop of a possible resumption of the policy of monetary stimulus if the yen will strengthen to 115 per dollar, and Euro to 1.15, the article says.
“Currency war is still alive and well. If the dollar will continue to weaken, the European Central Bank (ECB) and the Bank of Japan will be back in the game”, — quotes Bloomberg the head of macroeconomic strategy at State Street Global Markets Whether Ferridge.