Explainer: U.S. dollar intervention: What would it take?

“That has put the almost unthinkable scenario of currency intervention up for debate in global foreign exchange circles” writes Midwest Communications Inc for “Recent comments by U.S. policymakers suggest that FX intervention is off the table for the time being.Strategists at Citi expect a U.S. FX intervention would weaken the greenback by 2-3% over the first few day, they said in a recent note.The U.S. Treasury and the Federal Reserve generally collaborate on foreign exchange intervention decisions.Citi FX strategists also see the chances of intervention rising if the dollar strengthens about 10% further from here, with the risk of intervention becoming acute around EURUSD at $1.05.

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