ECB Intervention Talk ‘A Risky Scenario’

CURRENCY NEWS

FRANKFURT--The sabre-rattling from the ECB on intervention to save the falling euro may have lifted the currency off historic lows, but analysts say the central bank is playing a dangerous game.

Strong verbal intervention may be providing temporary support, but unless it is followed by action, there will be a temptation to call the bank’s bluff in future.

Ever since the euro hit a new low of around $0.8850 and Y95.60 on May 4, ECB officials have been loudly reminding the markets that interven