TOKYO -- While developed countries once again compete to devalue their currencies, market players appear to have shifted their investments to stocks and bonds. The change in attitude comes in anticipation that monetary easing within the largest economies will continue to hamper exchange markets.
After 4 p.m. Tuesday, it was reported that European Central Bank executive board member Benoit Coeure said the bank will moderately raise asset purchases in May and June. Less than an hour after these remarks, ECB Governing Council member Christian Noyer said the ECB is ready to ramp up bond-buying as soon as the need arises. A couple of hours later, another Governing Council member Ewald Nowotny also said that low interest rates are here to stay for the time being. These remarks sent euro spiraling down, it had been firm for more than a month.