Will G7 intervene the currency market?31 March, 2008, 11:16. Posted by Zarathustra
Tags: ECB, US
From the Economist:
Under the right conditions, currency intervention can work.
The dollar is weakening to a level which makes Europe, Japan, and many others (like me, because there is currency peg of HKD with USD) unhappy. The article in the Economist implies that for the currency intervention to be successful, the key would be that the European Central Bank (ECB) to cut interest rate. Unfortunately, we see this report today:
European inflation accelerated to the fastest pace in almost 16 years, making it harder for the European Central Bank to cut interest rates as a global credit squeeze saps confidence among executives and consumers.