Currencies: Europe, U.S. and Japan Intervene to Prop Up Euro

The European Central Bank, after weeks of chatter, finally intervened today to prop up the sinking euro. The move was made in conjunction with U.S. and Japanese monetary authorities.

The intervention on behalf of the currency has propped up the euro against the dollar and the yen this morning.

Before the intervention, the euro was trading above $0.8500 and the central bank's buying immediately propelled the single currency to highs of $0.9015, a gain of more than 5%. Led by the European Central Bank, the other countries involved in the market action included, the USA, Japan and the U.K. This is the first time since 1995 that broad-based intervention of this magnitude has been undertaken. ...