Geithner gets buy-in from Sinapore, Indonesia on FX rates

In a joint editorial to run on Thursday, Tim Geithner and the Finance ministers of Singapore and Indonesia agree that the US must save more and Asian countries must take steps to spur more domestic consumption. They also call for more market-oriented exchange rates, in the column.

Singapore and Indonesia, along with Korea, Malaysia, Taiwan and most of the rest of the region, intervene regularly to buy dollars to keep their local currencies from strengthening too much against the greenback and the CNY, which moves in lockstep with the dollar owing to its peg.

EUR/USD and cable have eased to fresh session lows on the comments. EUR/USD eased as low as 1.4953 and cable to 1.6537. 1.4940 is key near-term support for EUR/USD with more at 1.4915/20. Cable support is at 1.6518.