G7 Helps Dollar
After meeting in Washington, DC, the G7 has finally voiced their concerns about the way the currency situation is shaping up. Sharp swings in major currencies and the concern over the American economy has forced them to actually release a communique seen by most traders. This is the first time in eight years that any statement issued by the G7 has actually specified what currencies they were concerned about.
The communiquÈ held a veiled threat that financial authorities will step in and take steps to boost the dollar through some form of foreign exchange intervention. Traders and analysts however are wondering just how seriously they should take the G7s statement because they are not sure if the group will really do anything to back up their statement. They feel that it will not be long before most traders go back to dollar-selling and working on curbing inflation internationally while the United States is in a recession.