Currency war is in full swing: G7 countries compete in devaluation

This week brought the currency markets increased volatility. The process of competitive devaluation, with all of this phenomenon excessive jumps in exchange rates is gaining momentum.
Australia's central bank made its move on Tuesday, lowering its interest rate to a record low of 1.75%, which has forced the Australian dollar to fall by more than 2% against the US dollar.
People's Bank of China lowered on Wednesday its rate of the national currency renminbi (the official name of the yuan) to the dollar by 0.59% (378 basis points) to 6.4943 per unit. This is the maximum weakening of the currency of China since August 2015, when the devaluation of the yuan very strongly reflected in global stock markets and led to a drop in China's main stock index by 5-6%.
The euro, meanwhile, rose to eight-month high earlier this week, despite repeated attempts from the part of officials of the European Central Bank to weaken the currency via verbal intervention.
The yen has strengthened this week to 18-month high against the US dollar, which called concern from the head of the Japanese Central Bank, Haruhiko Kuroda, who considers the growth of the national currency "excessive". The strengthening of the Japanese currency in recent years has a negative impact on the performance of many of the country's economy. We remind that at the end of last month, the Bank of Japan abandoned the expansion of monetary stimulus that disappointed investors.