El-Erian: ‘When You Have Very Sharp Moves in Currency, Something Breaks’

The greenback hit a seven-year high against the yen and a two-year peak against the euro earlier this month.
Divergent central bank policies are fuelling the currency move. While the Federal Reserve has begun pulling back its stimulus, the Bank of Japan and European Central Bank are increasing theirs to boost their flagging economies.
"Historically, when you have very sharp moves in the currency [markets], something breaks," El-Erian told Yahoo Finance.

This post was published at Money News