BRUSSELS: Worried euro zone policy makers yesterday
pressured Washington to do more to limit the dollar's slide
after it hit its lowest ever value against Europe's single
currency.
While finance ministers raised the tone of their complaints,
saying exchange rates were no longer in line with economic
reality, there was no mention - implicit or explicit - of
any direct central bank intervention to influence currency
markets.
Belgium's representative at the European Central Bank Guy
Quaden said: "Things are becoming exaggerated."
"It's up to the relevant authorities to assume their
responsibilities and particularly for US authorities, who
repeat that they are in favour of a strong dollar but who
should reaffirm their words," he said.
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The Europeans seemingly fear the dollar slide, which makes
life harder for euro zone exporters, may get out of hand after
the dollar sank below $1.50 per euro last week.
It hit a new low on Monday at $1.5275 per euro, and was trading
not far from that level yesterday as European finance ministers
met for a second day of monthly economic policy deliberations
here.
Belgian Finance Minister Didier Reynders delivered much the
same message, less bluntly than Quaden.
"There's a limit. The feeling is the dollar is more
of a problem nowadays than the euro. What reassures me is
that the American authorities seem to be realising this and
they want a strong dollar. I'm quite happy with this development."
French Prime Minister Francois Fillon added his voice to
the rising chorus of complaint, echoing declarations at a
the meeting of the euro zone's finance ministers and ECB president
Jean-Claude Trichet.
"There is a problem in the relationship between the
dollar and the euro," he said, adding that exchange rate
developments were partly to blame for the rising price of
commodities, which from oil to wheat are soaring.
Yesterday's talks were broadened to ministers from all 27
European Union countries.