This pushed the euro from a level of $ to $ It is interesting to note that Mr Horst Köhler, Managing Director of the International Monetary Fund, gave the ECB a vote of support for its intervention and said the Bank had acted ‘appropriately’ when intervening on behalf of the euro. He furthermore said: "Co-ordinated activities are appropriate and can work.
Intervention is a legitimate instrument but it has to be very selective to have an impact." It is perhaps also worth mentioning that the Reserve Bank of Australia has also intervened in their foreign exchange market in order to support the external value of their currency. 3.