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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (6034)	1/24/2004 12:41:57 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 110194

Trichet Says ECB Opposes `Excessive' Currency Moves (Update2) Jan. 24 (Bloomberg) -- European Central Bank President Jean- Claude Trichet spoke out against excessive currency swings, as European ministers appealed to the U.S. and Japan to stem the euro's 17 percent rise against the dollar in the past year. ``In the present circumstances we particularly stress stability and we are concerned about excessive exchange-rate moves,'' Trichet said in a panel discussion at the World Economic Forum in Davos, Switzerland. Calling the euro's gains a ``very, very touchy issue,'' Trichet echoed European policymakers worrying that a stronger currency will derail the recovery of the 12-nation euro region, which relies on exports for a fifth of economic output. The ECB's forecast for a recovery to 1.6 percent growth from last year's 0.4 percent assumes a euro at $1.17. The five-year- old currency's ascent since it passed that level in late November will trim half a percentage point off growth until 2005, Bank of America Corp. says. The euro now buys $1.2581, slipping from a record of $1.2899 on Jan. 12, the day Trichet first denounced ``brutal moves'' in exchange rates. In Davos, Trichet didn't stray from the message he has conveyed over the past two weeks and said ``I will stick to that.'' He gave no hints whether the bank would trim interest rates or buy dollars to cap the euro. quote.bloomberg.com