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John Authers

Lagarde Gives the Dollar What It Needed — a Peak

The ECB chief’s blog post laying out a more hawkish policy for the euro will come as a relief to multinationals and emerging markets. 

Lagarde sets out her limits.

Lagarde sets out her limits.

Photographer: Alex Kraus/Bloomberg

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The US dollar might just have peaked, and if it has then a blog post by Christine Lagarde has a lot to do with it. The president of the European Central Bank chose Monday morning to post an essay to the ECB website, effectively setting out a new and more hawkish policy. Both the policy itself and the fact that she had felt the matter so urgent that she needed to launch it online between meetings helped strengthen the euro significantly against the dollar. The leap almost to $1.07 is clear from a currency chart: