Has The Bank Of Japan Triggered A Global Currency War?

• Has The Bank Of Japan Triggered A Global Currency War? 
  by David Woodsmith, http://www.currencynews.co.uk/ 
  The major mover in the global currency markets during yesterday’s session in the global currency markets was once again the Japanese Yen. There was a time in the recent past that the Yen was considered a reserve currency – an asset which institutional investors flocked to during times of crisis. In many ways, the Japanese tender resembled an Eastern version of the US Dollar. However, that appears to have changed since the Bank of Japan embarked on a large scale asset purchase scheme which effectively flooded the global currency market with Yen.
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  The sharp weakening of the Yen was accelerated by last week’s announcement from the BoJ that it would be doubling the amount of funds which it was set to allocate to its controversial scheme. The move will see an extra £350bn worth of Yen released onto the market this year – an action which, by dint of the laws of supply and demand, has served to seriously weaken the JPY. This sent the euro to Yen exchange rate up to its highest level since the start of 2010 during yesterday’s session. The single currency has now gained close to 37% against the JPY since the middle part of last year. Meanwhile, the US Dollar has gained close to 30% against the Yen during the past 7 months alone.
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