The euro's plight will have joint top billing at today's talks with the G7's mounting concern about oil prices, which threaten to bring inflation and lower growth in the west. The expected swarm of protesters was largely absent in Prague yesterday, with most stuck at the borders by Czech police. Protest coordinators said there were eight hour queues at crossing points between Austria and the Czech republic as police used any minor infringement of vehicle or immigration rules to turn back the coachloads of demonstrators converging on the city. The mood in the city itself was tense, with a heavy police presence. The tent city set up in a disused stadium in the city to cope with the expected influx had fewer than 30 people in it.
Many protesters are reluctant to use the facility, regarding it as a trap.
Yesterday's surprise intervention was initiated by the European Central Bank which won crucial US backing after it became clear that the dollar's strength was damaging the American economy. As a member of the G7, we share concern about the potential implications of recent movements in the level of the euro exchange rate for the world economy. Central banks made their move as the euro was strengthening slightly after reaching a record low of just under 84.50 cents earlier this week. With the dollar undermined by a profits warning from the US technology leader Intel, the G7 saw an opportunity to catch dealers unawares. But the apparent show of unity was dented when the US Treasury secretary, Larry Summers, said America's strong dollar policy remained unchanged, despite the attempt to cap its value.