ECB's Nowotny Says Trade War Could Morph Into Currency War

The global trade war has the potential to affect exchange rates, leading to additional negative consequences, according to European Central Bank Governing Council member Ewald Nowotny.

“What we just see now is that we have quite interesting effects with regard to the exchange rates,” Nowotny said during speech in Zurich. “Which means that in addition to the trade war, we might have something like a currency war. Even if it is not an intentional war. But it might have effects that are much more heavy than if you just look at the tariffs.”