ECB fears strong euro will hit growth

ECB president Mario Draghi has signalled that policy makers are concerned that the euro’s strength will hamper their efforts to pull the economy out of recession.

“The exchange rate is not a policy target, but it is important for growth and price stability,” Mr Draghi said at a press conference in Frankfurt yesterday after the ECB kept its benchmark rate at a record low of 0.75%.

“We want to see if the appreciation is sustained, and if it alters our assessment of the risks to price stability.” The comments pushed the currency down more than a cent against the dollar.