Currency markets faced a higher level of intervention than what we have seen in years. Governments are more nervous about their export business and the quality of the global economic recovery. It was surprising how little intervention occurred in 2009 and 2010 even with the comments that we will be entering currency wars, but we are now facing a higher degree of government intervention. It is taking more complex forms instead of outright purchases or sales of currencies. Governments are more willing to use tax policies and capital controls to control exchange prices. The devil will be in policy details.
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