Euro advance is ‘not excessive’
The euro-dollar rate “is on the high side, but my feeling is it’s not excessive”, Mr Wellink, who heads the Dutch central bank, said. “The forces at work are much stronger and can’t be neutralised by a minor change in rates.”
Against the dollar, the euro advanced to $1.2621 at 11.41am in New York, according to EBS prices, from $1.2581 on Tuesday, when the euro had its biggest increase in two months.
The euro has gained 18% over the past year versus the US currency and 8.3% against the yen.
The dollar may decline further without efforts to counter the slide from the ECB and the US, said Laura Tyson, who headed the White House’s council of economic advisers for the first two years of Bill Clinton’s presidency.
The ECB “continues in its misguided policy”, said Ms Tyson.
Europe needs “a flexible, rapid monetary policy response,” she added.
