US TREASURY Secretary Henry Paulson was aiming a shot across Europe’s bow about currency intervention, rather than Japan’s, when he warned that he opposed any such bid to alter relative currency values.

HIGHER interest rates and a continuing depreciation of the dollar in 2004 are being anticipated on the back of economic recovery, but this could force a cut in ECB rates.

The dollar fell against both the euro and yen today after US retail sales for May came in sharply lower than expected.