U.S., Europe Want Dollar To Strengthen

London–The U.S. and Europe both want to see the dollar strengthen against the euro, according to the Financial Times.Senior officials told the London-based paper that policymakers want the dollar–which at one point this week hit a six-week high against the euro–to recover because they’re worried the currency markets have been focusing too on short-term economic…

London–The U.S. and Europe both want to see the dollar strengthen against the euro, according to the Financial Times.Senior officials told the London-based paper that policymakers want the dollar–which at one point this week hit a six-week high against the euro–to recover because they’re worried the currency markets have been focusing too on short-term economic weakness in the U.S.Senior eurozone officials feel that the dollar-euro rate had risen to levels that would fail to help either the U.S. or Europe, the Times said. The officials want to sidestep a situation in which the dollar could plunge too far before rebounding when investors see that the U.S. is not entering a depression and Europe’s economy is not weakening–which could hurt global financial markets.