Bond investors dampen talk of 'currency wars'

Currency manipulation is gaining ground as governments look to grow exports and control inflows. But any talk of imminent currency conflict is overblown, say credit investors.

Chinese currency
The US is pressuring China to speed up appreciation of the yuan

The risk of currency wars has been overstated since the major economic powers stand to lose too much by them, credit investors and strategists have said.

Fears of a currency war have grown in recent weeks. In September, the Bank of Japan intervened in the forex market for the first time in six years, selling an estimated ¥2.124 trillion to hold down the value of its currency against the dollar.

On September 27, Guido Mantega, the Brazilian finance minister, warned that a currency war risked

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