Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Euro’s Appreciation Worries Some ECB Board Members, FT Says

Published 03/09/2020, 05:51
Updated 03/09/2020, 08:18
© Reuters.

© Reuters.

(Bloomberg) -- European Central Bank policy makers are concerned about the euro’s appreciation and warned that further gains will weigh on exports and bring down prices, the Financial Times reported. The common currency extended losses.

Several members of the ECB’s governing council said the currency’s gains against the dollar and other peers risk holding back the eurozone’s recovery, the newspaper reported without naming them.

“The message coming from the ECB is of note, as we rarely hear on the currency,” said Patrick Bennett, strategist at Canadian Imperial Bank of Commerce. “The specter of deflation is rising across the globe. The consensus is that U.S. real yields have undermined the dollar, but the ECB looks to be pushing back.”

The comments echo what ECB chief economist Philip Lane said Tuesday, when he noted that moves in the euro will impact the common region’s monetary policy setting. While the euro’s gains is part of a broader slide in the dollar, the 19-nation European currency union is particularly exposed because of its relatively heavy reliance on exports and its long record of feeble inflation.

The euro extended its losses to drop 0.4% to $1.1806 at 1:49 p.m. in Tokyo.

©2020 Bloomberg L.P.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.