ECB Intervenes in Foreign Exchange Markets to Prop Up Euro

BERLIN -- In an attempt to strengthen the euro's nascent recovery, the European Central Bank said Friday it had once again intervened in the foreign exchange markets to boost the value of the battered currency.

After touching all-time lows below $0.83 last week, the euro had staged a modest comeback in recent days as the U.S. economy began to show signs of cooling. Apparently hoping to cement the euro's recovery while it has a tailwind, the ECB took action without the cooperation of other world central banks, most notably the U.S. Federal Reserve.

"The ECB has intervened today in the foreign exchange market owing to its concern about the global and domestic repercussions of the exchange rate of the euro, including its impact on price stability. The ECB confirms its view that the external value of the euro does not reflect the favorable conditions of the euro area," the bank said in a statement. ...