Bankers’ Attempt to Bolster Euro Fails Again

Europe’s top central bankers unilaterally intervened in money markets again, buying euros in another failed attempt to give their ailing currency a needed boost. Like the two interventions staged Friday, the euro’s exchange rate continued its downward track as analysts raised fresh doubts about the European Central Bank’s strategy and tactics. After the intervention, the euro immediately shot above 87 cents against the dollar after languishing around the 86.5-cent level overnight. But just like last week, the euro quickly sank below 87 cents. In trading in New York, the euro finished at 86.07 cents. ECB spokeswoman Regina Schueller would not say how big Monday’s intervention was, but said the ECB acted to stem inflation that can be brought on by a sagging exchange rate.