Currency war erupts, threatening to ripple across global markets

As the world's largest economies open up a new front in their increasingly acrimonious game of brinkmanship, the consequences could be dire

The currency war has arrived.

So say some of the best and brightest in the $5.1 trillion-per-day foreign-exchange market. US President Donald Trump on Friday accused China and the European Union of “manipulating their currencies and interest rates lower.” The comments came after the yuan plunged to its lowest level in a year, with little sign of China’s central bank intervening to stem the slide. They also follow a decline in the euro this year and add to the calculus that European Central Bank policy makers might need to consider when they meet next week.

As the world’s largest economies open up