The euro may be looking strong at present, but is this merely in contrast to a weakened dollar and sterling? Mark O'Sullivan asks whether Trichet is playing a dangerous game
The last time we saw concerted central bank intervention was over six years ago, when the fledgling euro was faltering badly and trading down at 0.86, and it was only the continued buying of euros by central banks that kick-started the currency into life. How times have changed: the euro now trades at an all-time high against sterling (EUR1.24), and against the dollar, it is just about to hit $1.60 - a huge psychological level. Central banks are now happy to hold reserves of euros, and the Iranians are even cheekily calling for oil to be priced in euros. But at these levels, should you ...
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