Looks like european politicians are waking up, and trying to talk the euro down:
Quote:
Stepping up his rhetoric on exchange rates after a meeting of leading central bankers in Basel, Mr Trichet said excessive exchange rate volatility was "not welcome and not appropriate".
He added that Europe's policymakers were concerned, and stressed: "We are certainly not indifferent." His remarks sent the euro, which has traded at record highs on an almost daily basis since the end of last year, sharply lower. It briefly touched $1.29 during the morning.
....
His latest "verbal intervention" is the first stage in a process that could ultimately lead to the ECB intervening on foreign exchange markets, although it would do so only as a last resort.
If it does intervene, the ECB would prefer a co-ordinated move with the US to increase its effectiveness, as in the effort to support the euro in 2000.
The meeting of the Group of Seven developed countries' finance ministers in Boca Raton, Florida on February 6-7 is expected to address the issue of currencies.
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http://story.news.yahoo.com/news?tmpl=stor...t/1073280969343
This might end the free fall in dollars vs. euro for the next 3-4 weeks until G7 have had their meeting - question on this meeting will be if the US will support a lower value euro.
01-12-2004
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