Mario Draghi said Monday that „the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring.“
FRANKFURT, Germany — European Central Bank head Mario Draghi has underlined his concern about the recent rise in the euro’s exchange rate.
Draghi said Monday that „the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring.“
The euro has risen from $1.05 at the start of the year to around $1.19. A further increase could weigh on exports from the eurozone and restrain its ongoing economic recovery. Draghi had also expressed concern about the euro at his Sept. 7 news conference.
Draghi told the European Parliament’s economic and monetary affairs committee that the current economic recovery was „firm and broad-based.“ The ECB is expected to outline at its Oct. 26 meeting how it will start phasing out its bond-buying stimulus, currently worth 60 billion euros ($71 billion) a month.
Draghi repeated his stance from the Sept. 7 meeting by saying that „the bulk of these decisions are going to be taken at the next meeting in October.“
Speculation that the stimulus would be withdrawn has helped drive the euro higher, since stimulus measures tend to weigh on a currency’s exchange rate. The ECB has been cautious about signaling a rapid exit from the stimulus, instead stressing that support would be gradually withdrawn as the economy continues to improve. The euro’s appreciation appears to have taken a breather, with the currency holding around or just under $1.20 in recent days.
