European Central Bank President’s Concerns About Currency Push Euro Value Even Lower

by Colonel on February 8, 2013

“The euro hovered near a two-week low on Friday after the European Central Bank chief voiced concern about the impact of the currency’s recent strength on the economy in remarks that analysts said went further than they had expected.

Mario Draghi said on Thursday that the exchange rate is important for growth and price stability and that he wants to see “whether the appreciation is sustained and will alter our risk assessment as far as price stability is concerned.

The euro traded at $1.3405, close to its late U.S. levels after having fallen 0.9 percent on Thursday. At one point it fell as low as $1.33705, the lowest since January 25.

Draghi said economic activity in the euro area should recover gradually in 2013 but added there are more negative risks than positive.

” — Hideyuki Sano, Copyright 2013 Thomson Reuters

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