Whenever we face renewed pandemic-related threats of market fragmentation that are a risk to price stability, the reinvestments that we undertake under the PEPP can be adjusted flexibly across time, asset classes and jurisdictions to counter those threats.
While it is not clear where the trading partner currencies are headed, there is a general agreement that the US dollar will continue to strengthen against the major currencies. In addition, our external competitiveness could be affected by competition from Asian economies, as they normally keep an undervalued exchange rate to boost their exports and services (e.g. tourism) sectors.