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Pimco Says ‘Cold Currency War’ Could Trigger Stronger Dollar

  • ECB, BOJ signal stimulus withdrawal a more distant prospect
  • Trump’s deployment of tariffs leaves him lacking ammunition
Bloomberg business news

The Case for a Weaker U.S. Dollar

The resumption of a “cold currency war” among global central banks could trigger a stronger dollar, Pacific Investment Management Co. said.

The Trump administration’s protectionist policies now face a counterattack from European and Asian policy makers, said Joachim Fels, Pimco’s global economic adviser, who defines a “cold” conflict as one fought with words and covert action rather than outright currency intervention. Their weapon? Just as the Federal Reserve heads determinedly down the tightening path, peers including the Bank of Japan and European Central Bank are turning dovish.