The dollar strengthened a fifth day versus the euro as U.S. consumer spending rose the most in three years a day after the Federal Reserve scaled back bond purchases that weaken the greenback and support global asset prices.
Talk of currency wars has made the headlines regularly since the outbreak of the financial crisis in late-2007. A lack of economic growth prompts countries to try and grab a slice of someone else's demand.
Koichi Hamada, an economic adviser to Japanese Prime Minister Shinzo Abe, told South Korea to adjust its own monetary policies if officials are concerned at the effects of a yen weakened by unprecedented easing.
U.S. benchmark stock indexes tumbled from five-year highs while oil, gold and silver led commodities lower as minutes from the Federal Reserve’s last meeting showed policy makers debated the risks and benefits of bond purchases.