Will the recent US-Dollar appreciation trigger a reverse currency war?

As a result of the FED’s aggressive monetary tightening to rein in inflation, the US-Dollar has significantly appreciated against the Euro and other currencies in the last year. It even breached parity with the Euro two weeks ago. The strong US-Dollar adds to inflationary pressures around the world. This leads to speculations about the risk of a reverse currency war.

Reverse Currency Wars

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