16.06.2016 - Has Janet Yellen raised the risk of a currency war?
Will Janet Yellen's decision to keep US interest rates steady trigger a fresh round of currency wars? Central bankers in Europe and Japan will be gnashing their teeth as their currencies continue to gain ground against the weakening US dollar. The stronger yen and euro puts pressure on European and Japanese exporters, and fuels deflationary pressures by cutting the cost of imports. The US dollar moved lower overnight after Yellen and her fellow policy-makers at the US Federal Reserve lowered their estimates for future rate rises. Lower interest rates weigh on the US dollar because they discourage investors who are chasing higher returns...............................................Full Article: Source
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