News Photos
Search Advanced Sign in / Register fans
 
WORLD NEWS    
 

Advertisement

Eurozone officials say they support strong U.S. dollar
Strong euros might hurt EU's trade in the U.S.
Associated Press
Page 15
2009-10-21 12:00 AM
Seeking to cool the euro's soar toward a 14-month high, the European Central Bank and the 16 nations that use the euro said Monday that they supported a strong U.S. dollar.

The euro rose to US$1.4967 in Monday trading, just shy of a 14-month high of US$1.4967 hit last week, as investors expected strong earnings news from U.S. companies this week - which could see them shift funds from safe-haven dollar investments to riskier but more profitable stocks.

The weakening dollar has raised concerns in U.S. trading partners because it makes it harder for them to sell goods in the U.S., the world's biggest economy, and to Asian economies pegged to the dollar. A weak dollar could also undermine fragile recoveries in those countries.

Jean-Claude Trichet, the eurozone's top central banker, said European officials "have a vested interest in a solid and stable currency system."

The ECB president says he and eurozone finance ministers echoed recent comments by U.S. officials on the importance of a strong dollar.

"We very much share that view expressed by the Treasury secretary and we also share the views expressed by (Federal Reserve chairman) Ben Bernanke," Trichet said.

He said Europe did not want to "put into question the seriousness" of U.S. officials' comments. "We trust what they say," he said

He also repeated comments he made earlier this month, saying the main message that eurozone finance ministers and the ECB have is that "excessive volatility and disorderly movements on exchange markets are bad for economic and financial stability."

The strong euro is increasingly a problem for Europe - and Germany, the world's biggest exporter. It makes German cars and French wine more expensive for the euro's main trading partner - Britain - as well as its second major export market, the United States.

Eurozone exports to the rest of the world slid 23 percent in August from a year ago. That was the fastest drop this year as a global recession stilled demand for many goods and services.

Eurozone nations also agreed Monday to make aggressive efforts to pay back mounting public debt when they finally withdraw economic stimulus programs that have supported growth this year.

Jean-Claude Juncker, the Luxembourg prime minister who leads regular talks between eurozone finance ministers, said they "do not think the time is right" to start an exit strategy now.

 
Have Your Say :

We welcome your comments on this and other stories. Comments are submitted for possible publication on the condition that they may be edited. Please provide your full name and suburb/location. We also require a working e-mail address – not for publication, but for verification only.

 
Post your feedback
 
 
 
More WORLD News Stories
Dog sleds, raw seal meat and biting cold await G-7 finance ministers   2010-02-05
Toyota says Prius had brake design problems   2010-02-05
Haiti business community seeks to help rebuild economy   2010-02-05
As Toyota troubles mount, Congress wants answers   2010-02-05
Google, U.S. intel to team up to fight cyberattacks   2010-02-05
Deutsche Bank bounces back with strong 2009 profit   2010-02-05
U.S. stocks take breather after two-day rally   2010-02-05
U.S. dollar little changed in Asia   2010-02-05
Asian stocks drop after Wall Street resumes slide   2010-02-05
Oil prices down in Asian trade, stay above US$76   2010-02-05
Child slavery in Haiti is common and legal   2010-02-05
Sri Lanka leader says Tamils should work with gov't   2010-02-05
Pandas leave U.S. for new homes in China   2010-02-05
Talks unlikely   2010-02-05
Cambodia to draft new law against acid attacks   2010-02-05
Oil discovery   2010-02-05
Obama's aunt readies fresh fight   2010-02-05
Speedy vehicle plows into Nevada casino; 2 dead, 8 hurt   2010-02-05
Suns end Nuggets hot home form   2010-02-05
Milito gives Inter slight advantage   2010-02-05
 
01     02   03   04   05   06   07   08   09   Next   >
 
To search for articles form the past seven days, Click on ARCHIVES
  7day free
 
 
TOP

©2009 Taiwan News All Rights Reserved.