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Unlike, say, the Bank of Japan, the European Central Bank isn't in the habit of directly intervening in foreign exchange markets to influence the value of the euro. Not since 2000, when the fledgling euro was trying to establish itself, has the ECB directly intervened in markets to influence the currency. However, previous bouts of euro strength have prompted policymakers to voice concern. Earlier this year, when the euro was also rising, ECB President Mario Draghi went out of his way to point out that his central bank monitors the impact of the euro's strength on inflation. Investors interpreted that as an indication the ECB would consider an interest rate cut, which has the potential to reduce the value of the euro. If the euro's current strength continues, markets will be monitoring Draghi's next monthly press conference on Nov. 7 for any similar hints of action.
[Associated
Press;
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