It may have helped if Germany bothered to coordinate their efforts instead of going it alone. Then again, there is little reason to support such a strong euro. But does the US even want a strong dollar? For exports, a weaker currency is not such a bad thing. Following the German ban, the euro has dipped below $1,22 in early trading while the German DAX exchange has slipped by nearly 2%.
Germany banned risky bets on bonds, stocks and credit protection, stunning investors and setting euro zone markets up for a rough ride on Wednesday amid fears Berlin's attack on speculation will backfire.
Germany banned some trades in a strategy known as short selling to fight financial speculation, which it blames for much of Europe debt crisis. Analysts said, however, the move could do more harm than good, draining funds away from the euro zone and deepening risk aversion.
Some called it an act of desperation.
"Germany just switched off the financial lights in Europe," said a senior forex trader at a European bank in Singapore.
