New Kind of Currency War Has Central Banks Vying for Strength
- Inflation has made policy makers prefer a stronger currency
- Shift by European Union caught markets off guard, TD says
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Raging inflation is flipping the definition of currency wars, turning them into a race to the top instead of the bottom.
The way these battles conventionally work is this: a country tries to weaken its currency, to give it an advantage in global trade. It’s what President Donald Trump threatened to do with China, which he accused of intentionally devaluing the yuan.