Central Banking

Kohler: don't over-interpret market reactions

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Horst Kohler has warned against an over reaction to exchange rate movements following statements released at the G7 Dubai meeting. The G7 said more flexibility is needed in exchange rates "to promote smooth and widespread adjustments in the international financial system, based on market mechanisms". The statement triggered a sharp sell-off in the dollar and share prices.

Source: AFX UK

"I don't think that we should now over interpret the first reaction of markets," Koehler said at a news

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