Draghi said in Frankfurt today that "When a central bank’s ability to steer the overnight rate is limited, it can still alter its monetary stance by means of directly influencing expectations."
With those management of expectations' efforts, euro dropped to 12 year lows; and as the Yen and Aussie and Kiwi currencies fall for several days; worries are on 2 counts: a) is there no parking place other than the dollar? b) is there any element of truth in allegations that some central banks flouting professional standards to help 'fix' local economies' interests?
Earlier, when faced with situation of unduly appreciating dollar, it was the US Treasury officials who made verbal interventions and it would appear that US corporations may desire that there is a repetition of history so that competitive falls against the dollar does not affect the US corporations so much.
Views expressed without any risk or responsibility
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