Mundell proposes $1.30 ceiling on euro

Nobel-prize winning economist Robert Mundell was quoted on Monday 19 January 2as saying Group of Seven rich nations should intervene to halt a euro rise byond $1.30.

Mundell told Germany's Handelsblatt newspaper that G7 countries should set upper and lower boundaries for exchange rate moves.

Asked where the upper boundary would be for the euro-dollar pair, Mundell replied: "At around $1.30. ECB chief Jean-Claude Trichet could initiate intervention (then)."

The euro hit a record high just below $