Last week the euro strenghtened 7% vis-a-vis the US dollar. Our shekel should have strenghtened also 7% but it did not. Stanley Fisher, the Central Banker, is buying dollars to fight the speculators who are betting that the shekel will also rise. Current rate is 3.66 shekel per dollar, when it should be 3.50
China and Brasil are also fighting the same war. Their Central banks are buying up dollars and then selling them for euros. The end result is that they are weakening the dollar and strenghtening the euro. What is what Bernanke wants.
These are dangerous times (when it is not?). Elephants are fighting and the ants will get trampled down. The currencies of small and mismanaged countries will be manipulated. Alert & agile monkeys will steal those tasty thingies left unattended.