CONCERNS over a possible currency war remain unabated despite attempts by prominent leaders to calm fears by dismissing such risks.
For one thing, policymakers in emerging markets, especially those in Asia-Pacific, are clearly unhappy with the sharp weakening of the Japanese yen as has happened in recent months, as that could perceivably put their countries' export competitiveness at risk. And for that reason, there seems to be increasing fears that these policymakers would jump onto the bandwagon of currency devaluation in order to protect their countries' economic interests.