Euro advance is ‘not excessive’

THE euro rose against the dollar yesterday as European Central Bank council member Nout Wellink said its advance is “not excessive” and the ECB shouldn’t cut interest rates to stem the appreciation.

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.