- Obama to Outline Strategy to Boost US Exports to Asia
- Friday May See 'Risk Trade' Stalling; Dollar in Focus
- Job Market Politics to Keep Interest Rates Low
- AIG, Symbol of Crisis, Watches Its Stock Zoom Back
- Disney Profit, Sales Top Street Forecasts; Shares Jump
- Bill Gates Praises Apple's Jobs for 'Saving the Company'
- Cities With the Most Home Price Reductions
- Is Euphoric Market Ignoring Warning Signs?
- Video Game Sales Plunge, but Have They Hit Bottom?
- EXCERPTS and IMAGES: Warren Buffett & Bill Gates - Keeping America Great
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Gold Is a Bad Inflation Hedge—Like Oil: Stock Picker
- Intel's Andy Bryant Offers An Explanation
- US 'Actively Working' on Weaker Dollar: Fund Manager
- Options Boil on Biotech Buyout Rumors
- Warren Buffett's $100,000 Offer and $500,000 Advice for Columbia Business School Students
- Activision Blizzard's "Modern Warfare 2" Sales Break Records
- 5-Star Manager's 5 Stocks for Changing Markets
MOST SHARED
- Pharma & Social Media
- CNBC TRANSCRIPT: Warren Buffett & Bill Gates - Keeping America Great
- Cities With the Most Home Price Reductions
- Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia Business Students
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Disney Profit, Sales Top Street Forecasts; Shares Jump
- Warren Buffett's $100,000 Offer and $500,000 Advice for Columbia Business School Students
- Is Euphoric Market Ignoring Warning Signs?
- China Fourth Quarter Growth Could Hit 10%: Official
- Obama to Outline Strategy to Boost US Exports to Asia
Text Size 
Verbal intervention to try to stop the euro's advance is all that exporters will get for the moment, but if the going gets tough things may change, analysts say.
 |
In September 2000 the ECB intervened jointly with U.S., Japanese, UK, and Canadian authorities to halt the single currency's fall, and the euro, which was hovering around its record low of $0.84, shot up above $0.90.
It had lost as much as 28% of its value against the U.S. dollar since its launch in January 1999.
Speed is the Issue
But a similar decision to reverse the dollar's plunge will not be taken lightly and for the moment markets have to content with U.S. Treasury Secretary Henry Paulson's mantra of favoring a strong dollar.
"(Intervention) has to do with the speed of the depreciation," Erste Bank’s Veronika Lammer told CNBC.com. "I do not think (the ECB) would cut the interest rates as long as the dollar is in a normal stage."
The dollar has lost around 20 percent of its value against the euro in the past two years.
An intervention like the one in the early stages of adopting the euro, when the single currency fell too fast against the dollar, was likely to be considered if the greenback's depreciation quickens, Lammer said.
"They would intervene together with the Fed if they feel there would be loss of confidence in the US dollar. They would buy dollars on a coordinated basis," she said.
Print
Email
- Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
- They may have wrecked their companies or saved our economy. Tell us what you think.
- Big pharma embraces social media, but how much should a tightly regulated sector say on Facebook or Twitter?
- A European dating site finds lovelorn singles from one country to be consistently uglier. Which is it?
- Contributor David Pogue looks at two of the latest efforts to perfect the digital pocket camera.
- PepsiCo is ramping up its onsite health facilities for workers.
Data is a real-time snapshot *Data is delayed at least 15 minutes