Just a few days after global finance ministers’ and central bank chiefs’ meeting in Moscow dismissed talk of a currency war, it appears that a battle is brewing in Asia to keep the value of currencies competitive.
On Wednesday, South Korea’s president-elect Park Geun-Hye said her government would take pre-preemptive and effective steps to ensure stability for the won, saying a sharp fall in the yen has made business tougher for South Korean firms.
The same day, New Zealand’s central bank governor Graeme Wheeler said strength in the kiwi dollar was partly the result of global imbalances. Those comments sent the currency falling more than 1 percent.
These are the latest signs of concerns that Asian countries may push down the value of their currencies, despite efforts at the recent meeting of the Group of 20 nations to diffuse talk of a global currency war.
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