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More jawboning on the US$

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By Peter Boockvar - September 29th, 2009, 11:20AM

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.

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3 Responses to “More jawboning on the US$”

  1. Pat G. Says:
    September 29th, 2009 at 1:02 pm

    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:
    September 29th, 2009 at 1:46 pm

    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:
    September 29th, 2009 at 11:08 pm

    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.