The fallout of US Treasury secretary Steven Mnuchin provocatively championing a weaker dollar is generating urgent debate on two issues in the currency market.
Investors and traders are asking how much lower can the dollar fall, and whether rising trade tensions will test the robustness of the global economy.
There has been no let-up in the action that first erupted on foreign exchange traders’ screens on Wednesday after Mr Mnuchin declared at the World Economic Forum in Davos that a weaker dollar was good for the US economy.
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