Currency war rhetoric, which was left for dead after the G-20 summit last month, could get revived as another major central bank eases monetary policy, pummeling its currency lower, one analyst said.
On Thursday the European Central Bank cut interest rates by 25 basis points to 0.5 percent. The move was broadly expected, but ECB President Mario Draghi's talk of negative interest rates sent the euro tumbling by near 1 percent.
The ECB action comes nearly a month after the Bank of Japan shocked markets with radical policies to reflate its economy sparking a free-fall in the yen.
(Read More: Bank of Japan Unveils Aggressive Monetary Policy)
One analyst tells CNBC that the recent rate cut by the ECB has the potential to revive talk of a currency war which heightened at the start of the year.
"This is an example of yet another central bank cutting rates and in the process enhancing the price competitiveness of its country's [or in this case the country bloc's] export sector. The whiff of a currency war has just gone a little more pungent," said Tony Farnham, economist at Australian stockbroker Patersons Securities.
"It echoes the moves we've seen from Japan where their monetary policy has been to 'go big or go home,'" said Farnham.
"Draghi hinted that further rate cuts were on the way if the euro-zone's economic fortunes failed to lift - such actions would open the way for further depreciation of the euro," he added.