Poehl Praises U.S. Economy, Says Dollar Should Stabilize
Undated (AP) _ Poehl said the dollar, after losing 50 percent of its value against the mark in the past three years, should begin to stabilize.
″I believe there is a certain chance that the dollar’s exchange rate will stabilize,″ Poehl told a luncheon meeting with foreign reporters.
″I am not saying it will (stabilize) at a particular level, but I am saying there is a tendency towards stabilization,″ he added.
Poehl said U.S. officials, after seeming indifferent to the fall of the dollar, now believe a further loss in the currency’s value would hurt the American economy.
″I believe there is a growing conviction (in the United States) that a further fall in the value of the dollar is not in the United States’ interest,″ Poehl said.
The central bank chief added that American officials are also now prepared to take action to defend the dollar, after months of making relatively little attempt to halt its deterioration.
″One can see that the Americans are taking a more active stand than they earlier did in defending the ollar,″ Poehl said. He did not elaborate, but apparently was referring to efforts by the U.S. Federal Reserve to intervene in currency trading by purchasing dollars.
Poehl said one source of a stabilizing dollar was a new strength in the American economy, which he said ″has become very competitive.″
The president of the central bank, called the Bundesbank, also said he saw no evidence of a looming worldwide recession that some economists have forecast.