A new currency war may be on the verge of breaking out, if one hasn’t already. Last Thursday, European Central Bank boss Mario Draghi reduced the benchmark interest rate by a quarter point, taking it to a record low of 0.25 per cent (meaning he has only one cut left in his arsenal). He did so not to weaken the euro – he was more worried about fighting an alarming disinflation trend. But he and Europe’s struggling economies were pleased that the cut removed the currency’s forward momentum. “As you know, the exchange rate is not a policy target for the ECB,” he said at a press conference last month. “The target for the ... (full story)