Trichet Says `Strong Dollar' Helps U.S., Opposes Exchange-Rate Volatility

More economic 'weather forecasts' that fail to open up the window and look outside first. The markets, not centralized proclamations or actions, determine the exchange rate of all sovereign nation currencies. Capital ongoing assessment of a nation’s debt and fiscal management abilities through purchases or sales establish a weak or strong currency. The direction of a currency’s trend, especially relative to gold, reflects the market’s collective confidence in that currency. Contrary to the headlines, no amount of intervention or rhetoric can perturb these secular trends.

“I share the view of the U.S. authorities when they reiterate that a strong dollar is in the interest of the United States of America,” he said at a press conference in Frankfurt today.

Source: finance.yahoo.com