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Are the currency wars already over? From Reuters:







I continue to think that Japan made a significant tactical error when outlining their policy objectives. A substantial monetary easing that accomplished the objective of driving up inflation expectations in and of itself would be expected to depreciate the yen. Japanese policymakers could have framed the policy as simply supporting the domestic economy similar to the approach initiated by the Federal Reserve. The impact on the yen itself could have been implicit rather than explicit. Instead, by making the yen a part of the discussion at the beginning, Japanese policymakers angered their international partners. I tend to think this was an unnecessary and ultimately counterproductive strategy.

Bottom Line: If Japanese policymakers really intend the depreciation of the yen be limited to 90, then the supposed currency wars may already be near an end.

Source: Currency Wars Over Before They Begin?