Add the President of the World Bank, Robert Zoellick to the calls over the past few days of a desire for a strong dollar as he is saying the US “can and should have a strong dollar.” The dollar has been benefiting for the past two days from the vocal support given to the US dollar following its recent leg lower. It will ultimately be action from the Fed and the US government that will ultimately determine the direction of the dollar rather than the hollow words of support. Jawboning though is always the easiest technique in the FX world to try to influence the direction of currencies.

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “More jawboning on the US$”

  1. Pat G. says:

    Jawboning only gets you so much bang for your buck. How witty. Like you said, the FED will ultimately have to put up or shut up.

  2. franklin411 says:

    If we have a snowball’s chance in hell of developing a sustainable export economy, it’s going to be with a cheap dollar.

  3. ttc7 says:

    Devaluing the dollar is the path to disaster. Sure, it will pump up exports in the short run, but it’s just another quick-fix, reflecting the instant-gratification mentality that got us into the current mess. In the long run, the damage would be mindboggling. I, for one, hope the Fed puts up.