The German finance ministry is opposing using interventions to prop up the weak U.S. dollar, weekly magazine Der Spiegel reports Saturday, citing a finance ministry document prepared for Finance Minister Peer Steinbrueck.
The document comes ahead of next week's meeting of the Group of Seven most industrialized nations in Washington, which Steinbrueck is scheduled to attend.
According to the report, the ministry believes that interventions to strengthen the dollar "can hardly be financed" in the volumes that would be necessary. What's more, a rate cut by the European Central Bank to bring interest rates in the euro zone closer to levels in the U.S. and therefore make investments in the euro zone less attractive are "extremely unlikely" given the high inflation rate in the 15 countries sharing the euro.
The euro has set a record high of over $1.59 last month but has since eased again slightly.
Steinbrueck's spokesman Torsten Albig declined to comment on the report.
Magazine Web site: http://www.spiegel.de
-Andrea Thomas, Dow Jones Newswires; 49-30-2888-4126.
(END) Dow Jones Newswires
04-05-08 0801ET
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