Currency wars unlikely to break out in region: StanChart economist

Singapore

WHILE Asia is vulnerable to an escalating currency war - with both the euro and the yen being driven down in value - regional economies have not locked horns over this, senior analysts from Standard Chartered Bank said at a research briefing on Monday.

A currency war or competitive devaluation refers to a country devaluing its currency in order to make exports cheaper, spurring another country to "compete" by doing the same. This could hurt trade.

In such situations, policymakers and central banks not only ease monetary policies, but also "talk down" their currencies at the same time, said Callum Henderson, head of FX research at the bank. "Asian currencies…