Yes i think that is what the chinese and japanese were trying to do....
the funny thing is that economists and everyone always reapeats is thinking they can long term support currency by going to theopen market and buying...eventually the currency will move against them and they wont be able to stop it.
Europe is behind the US in fiscal policy by about 9-12 months. I think that mainly Euros were buying dollars to put into the equity and bond markets here. The 10-year treasury was up last week and i think yields will start to creep up here very soon, while at the same time, the yields on Euro bonds continue to drop. I also think that Euros are moving into dollars to take advanatge of a reversion to the mean in the currency market. I talked to a currency trader at a major investmnet bank late last week and their projection is the Euro to max at 120/125 and then creap back down to parity around 100....god that was a long paragraph...
