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All eyes remain on the beleaguered euro.

With selling pressure continuing unabated, the euro has hit lifetime lows against the dollar and the yen.

Although European finance ministers have declared the unit’s current level does not reflect the strong fundamentals of the euro zone, the world currency market remains unconvinced.

Comments by finance ministers and other officials from the 11-nation euro zone in Versailles last week have gone largely unheeded in the marketplace.

In the market’s view, both U.S. and euro-zone monetary officials are feeling little urgency to come to the euro’s rescue in earnest.

A strong dollar can help ease the way the U.S. deals with its bloated current-account deficit, while a weak euro helps Europeans improve their competitive positions on the world export markets.

However, a loss of confidence in the euro can come back to haunt the euro-zone economy.

Given changes unfolding in the euro environment, nevertheless, there appears a good chance that coordinated efforts will soon emerge to keep the euro from falling further.

Washington is no longer obsessed with worries about the specter of a stock market collapse and inflationary pressures, and may soon voice concern over a weak euro.

The U.S. Federal Reserve is now expected to leave rates intact for the rest of the year.

The Fed now appears certain to succeed in engineering a soft landing for the U.S. economy. The U.S. financial markets are also now in a better position to live with a stronger euro.

The biggest downside factor for the euro is a continuing flight of money away from the euro zone.

Unless monetary authorities are willing to come to the euro’s rescue, its further fall will be inevitable.

Skepticism abounds over the effectiveness of tax reduction plans and structural reform programs announced by euro-zone countries.

A weak euro is expected to come up for discussion at the Sept. 23 meeting of financial leaders from the Group of Seven industrial nations.

Concerted efforts of U.S., European and Japanese monetary officials may be on the way to counter speculative attacks on the euro.

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