By Anna McLauchlin - 16th February 2004
European Central Bank chief Jean-Claude Trichet has refused to say if the ECB will intervene in the foreign exchange markets to curb the steady rise of the euro.
"I never comment on intervention," he told MEPs on Monday. "When we have something to say we say it".
Any such decision, he added, would be taken by the ECB's Governing Council.
Asked what a reasonable euro/dollar rate would be the ECB president replied, "I will not give a figure."
Repeatedly pressed on the level of the euro, Trichet would only reiterate that the ECB is "concerned by excessive moves in exchange rates."
The European single currency has crept towards its all time historic high of $1.2898 since the American Federal Reserve said a US interest rate hike is not on the cards.
Rumours have circulated that the ECB could buy up dollars in order to strengthen the currency and bringing the euro's level down.
Meeting with the European Parliament's economic committee, the bank chief insisted all signs point to a solid economic recovery in Europe this year.
"The evidence available [since December] has made us more confident that the recovery did indeed begin in the second half of 2003 and has strengthened our expectation of an upswing in economic activity."
And the ECB president urged Europeans to spend, insisting the bank will contain inflation.
"The Governing Council of the ECB is fully aware of (citizens') fears," he said.
"I want to assure them of our determination to preserve price stability in the euro area not only this year and next year, but on a medium and long-term basis."
Price stability for the ECB means keeping annual inflation close to or below two per cent.
Have your say...
Please enter your comments below.