European Central Bank President Mario Draghi has fired the latest salvo in the global currency war, a post-crisis strategy where central banks indirectly devalue their currencies to help pump up exports and economic growth.
Just before Draghi’s press conference last week, the euro was soaring and just about to hit 1.40, for the first time since October 2011.
Then he uttered the magic words, “comfortable with acting next time” and the euro has been on a one-way ticket down. It’s now sitting at nearly three-month lows against the dollar and the yen. With those words, Draghi raised expectations of easing policy in June.
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