There are no friends in war.
In a currency war that party that acts first transfers deflation to its major trading partners.
Korea has now joined – the first move for the Korean Central Bank since June 2015.
Rates were cut on the key overnight rate to 1.25 percent from 1.50 percent.
The Korean Won moved quickly by 0.7 percent – against the USD – but shortly thereafter pared the move to half of the intended consequences.
If the U.S. Fed Reserve does not move to strengthen the U.S. dollar – things will become very messy indeed.