This article is for those who blame China for manipulating currency. Many countries are doing the same trick and who is the master? You bet! There are already four rounds of "quantitative easing" in US and the number is still counting. If you are interested in this topic, read books related to "currency war". Currency war is a continuous battle and more brutal than actual wars. Japan's Yen Drive Could Spark Copycats - WSJ.com --------------------- Unusual explicitness from Japan's new leaders has helped convince the market they are serious about weakening the yen to revive the nation's embattled exporters, but such moves threaten to complicate Tokyo's relations with the U.S. and other major trading partners. Many central banks, including others in Asia as well as in Latin America, have been trying to keep their currencies from becoming too strong after the Federal Reserve and European Central Bank adopted super-loose monetary policies that have suppressed their currencies. The yen's weakening has the potential to ripple across Asia, as other economies look to follow suit. Unlike decades past, Japanese manufacturers directly compete with neighboring economies such as South Korea, Taiwan and increasingly China on high-end electronic, automotive and industrial goods. That dynamic could force Japan's neighbors to suppress their currencies. In the case of China, any signs it is intensifying efforts to keep a cap on the yuan could in turn resurrect tensions between Washington and Beijing over the currency issue, which had subsided in recent months. A China move would also be more broadly felt by its emerging-market competitors in places such as Latin America and Southeast Asia. In South Korea, which is wrestling with a surge in the won this year, the country's central bank was particularly blunt Thursday, saying it said it would prioritize economic recovery when it reviews its official interest rate each month. Other countries in recent yearsâ€”including Israel and Switzerlandâ€”have taken strong action to prevent their currencies from strengthening too much and hurting exporters. Brazil stoked international tensions two years ago by complaining of a "currency war," blaming the U.S., Europe and China and others for pushing their currencies lower to boost their competitiveness. Leaders in those regions have said they are only trying to support their own economies. Brazil has said the flood of cheap money flowed into the country searching for higher returns from higher interest rates. The effect was to inflate the Brazilian currency, which in turn made it harder for local manufacturers to compete. Despite chiding other nations for weakening currencies, Brazilian officials have sought to weaken the real, by putting restrictions on foreign investment and reducing interest rates.