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European Central Bank: Strong dollar is extremely important

16 October 2009 14:29 (UTC +04:00)

Bakuâ€“ APA-Economics. It is very important that U.S. policymakers have said they would pursue a strong dollar policy, European Central Bank President Jean-Claude Trichet said on Thursday.
When asked on the dollar foreign exchange rate, he said: ’I would repeat exactly what I said before, which I think was very well understood by the observers as the position of our institution,’ he said in a speech at a banking event.
’I trust that it is extremely important that the U.S authorities, the Secretary of the Treasury and the Chairman of the Fed will pursue policies that are taking into account the fact that the strong dollar is in the interest of the United States of America, and I trust them to respond very clearly.’
He also said sudden movement in foreign exchange rates were not helpful.
’Excessive volatility is an enemy from the standpoint of stability and prosperity of the global economy.’
The euro hit a 14-month high of $1.4967 on Thursday, Reuters data showed. Some economists have said the euro strength could sap the nascent recovery by making euro-zone products less competitive.
Trichet also said current interest rates in the euro zone are appropriate. The ECB kept its main refinancing rate is at 1.0 percent last week for the fifth month running. Source: Reuters