U.S. dollar, euro and Swiss franc bank notes are seen in a bank in Budapest August 8, 2011. REUTERS/Bernadett Szabo
Marc Jones and Elizabeth Howcroft, Reuters: Analysis: Is a post-COVID currency war coming?
LONDON (Reuters) - Financial markets’ euphoric reaction to the recent COVID-19 vaccine breakthroughs and U.S. election results is pushing some currencies up so fast that rumblings have begun about a potential new FX war.
Almost a decade after Brazil’s finance minister likened Western central bank money-printing to economic warfare, some of the conditions that led countries to weaken their currencies then look to be forming again.
Investors’ growing eagerness to buy into risky assets gave emerging market currencies their best month in nearly two years in November, stretching a run of gains that started in June.
A further extension -- seen as likely after the dollar hit a two-year low on Thursday -- would mark be their longest uninterrupted climb since 2012.
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WNU Editor: Common sense currency policy is now an after-thought in most countries around the world. A currency war is coming. Probably sooner rather than later.
1 comment:
The nice aspect of fossil fuel is that one can conjure up money 24 hours each day unlike green powered printing presses.
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