Skip navigation
Watchlist Sponsored By :

Current DateTime: 10:03:57 12 Nov 2009
LinksList Documentid: 24355697

FEATURED QUIZZES


Current DateTime: 10:03:57 12 Nov 2009
LinksList Documentid: 33793611
  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?

  • Think You Understand Markets?

      We've selected some questions from the Financial Industry Regulatory Authority's test of investor knowledge. See how you do ...


Current DateTime: 10:03:57 12 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Talk of Euro Intervention Intensifies
By: Antonia Oprita, Associate Web Producer | 05 Dec 2007 | 11:14 AM ET
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.

Exchanging Dollars and Euros
It would not be a first for the euro, which in its early stages had to be propped up against the dollar to prevent a loss of confidence eroding the then-new currency's status.

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.

More from CNBC.com

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • 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.
ADD COMMENTS
Remaining characters


Current DateTime: 02:33:17 12 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 11:27:47 12 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 05:29:42 12 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:00:12 12 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters