The head of the IMF warned that a growing drive by nations to cap the strength of their currencies risked derailing economic recovery while the dollar dropped further on Wednesday 06 oct 2010.
Concerns that the Federal Reserve is about to embark on another round of policy easing that could weaken the dollar, tallied with China's polite refusal to let its yuan rise fast, has pushed currencies to the top of the agenda at Friday's meeting of finance chiefs from the Group of Seven nations.
Currency war will continue in future and may take new forms. china is igniting it more with it's mercy to Greece debt. It is adding the catalyst. If US further uses QE in next November, then official war signal has come and nations will protect their own interests. Already Japan, Brazil and other south Asian nations are doing what all they can do to stop their currency appreciating. So, more war is ahead making forex market more dynamic and extremely volatile. strict stop loss is the only help traders and investors can get...!! Beware.