Jean-Claude Juncker, the EU’s ‘Mr Euro’, has given the clearest warning to date that the world authorities may take action to halt the collapse of the dollar and undercut commodity speculation by hedge funds. Momentum traders have blithely ignored last week’s accord by the G7 powers, which described ‘sharp fluctuations in major currencies’ as a threat to economic and financial stability. The euro has surged to fresh records this week, touching $1.5982 against the dollar and £0.8098 against sterling yesterday. ‘I don’t have the impression that financial markets and other actors have correctly and entirely understood the message of the G7 meeting,’ he said. Mr Juncker, who doubles as Luxembourg premier and chair of eurozone financiers, told the Luxembourg press that he had been invited to the White House last week just before the G7 at the urgent request of President George Bush. The two leaders discussed the dangers of rising ‘protectionism’ in Europe. Mr Juncker warned that matters could get out of hand unless America took steps to halt the slide in the dollar. # Read more by Ambrose Evans Pritchard World central banks last intervened eight years ago – with mixed success – buying […]