Last Friday, the Bank of Japan effectively tossed a grenade into the region’s currency markets with its surprise announcement of a new round of quantitative easing sending the yen USDJPY, +0.03% to fresh lows. The move will be particularly problematic for China, as its slow-crawling managed rate to the U.S. dollar USDCNY, +0.22% renders it is effectively defenseless when confronted by currency wars, in which countries try to steal growth from their trading partners through competitive devaluations. It also comes at a time when Beijing is already battling foes on two fronts: hot-money outflows and an economy flirting ... (full story)