Economics
ECB in ‘Currency War’ Over Euro, Commerzbank Strategist Says
- Views suggest ECB wants to force exchange rate: Leuchtmann
- Euro has fallen in past two days amid ECB verbal intervention
Last year the euro gained almost 9% against the dollar, the biggest annual jump since 2017.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank’s views on the euro this week amount to a declaration of “currency war,” according to research from one of Germany’s biggest banks.
The euro has slid in recent days after policy maker Klaas Knot said the central bank has the tools to prevent any further strengthening of the currency undermining inflation. Officials have since stressed that includes interest-rate cuts, to counter market skepticism, and plan to look into whether the euro’s gain since the start of the pandemic is driven by differences in stimulus policies versus the U.S.