The global currency wars are heating up again, Bloomberg says

Almaty. January 18. Silkroadnews – The global currency war could resume on a background of strengthening of the yen and the euro, Bloomberg forecasts according to RBC.
“According to the agency (Bloomberg), the strengthening of the yen and the euro could boost the monetary stimulus in Japan and Europe”, RBC informs.
Bloomberg notes last month the yen has strengthened significantly versus the US dollar for the third time, while the euro also grew versus other major currencies. Hedge funds are piling into bets that the yen will strengthen to its highest level in three years and also bets on the Common European Currency, Bloomberg says.
The discrepancy between the US economy growth and monetary policy with the rest of the world declined against the background of the signs that the US economy cannot fully avoid the impact of China’s economy slowdown and uneven recovery of other countries’ economies. These factors have an impact on the dollar, leading to the disruption of plans for the European Central Bank (ECB) and the central bank of Japan that benefits from the weak exchange rate of their currencies, says the agency.
According to Lee Ferridge, the head for macroeconomic strategy unit in State Street Global Markets, the policy of monetary stimulus shall work if the yen gets strengthened at the level of 115 to the dollar and the euro - up to $1.15.
“The currency war is still alive and well. If the dollar starts to suffer, then the ECB or the BOJ come back into play”, Bloomberg quotes Ferridge.
The yen strengthened 0.2 percent from a week earlier to trade at 116.98 per dollar. The euro advanced versus 11 of its 16 major peers, ending the week at $1.0916.
Bank of Japan Governor Haruhiko Kuroda said Friday that officials won’t hesitate to add stimulus if necessary, Bloomberg reports, while the ECB, in its turn, plans to discuss its policy during the meeting on January 21.