Euro at 10-Month High Poses Economic Threat, Juncker Says

Image: Jean-Claude Juncker said, “the euro foreign-exchange rate is dangerously high.” (Jock Fistick/Bloomberg)

bloomberg.com - January 16th, 2013 - Stephanie Bodoni

The euro’s 8 percent gain against the U.S. dollar in the past six months is posing a fresh threat to the European economy just as it shows signs of escaping the debt crisis, said Jean-Claude Juncker, who leads the group of euro-area finance ministers.

Echoing policy makers from Switzerland to Japan in bemoaning strong exchange rates, Juncker late yesterday called the euro’s value “dangerously high” after the 17-nation currency this week traded above $1.34 against the dollar for the first time since February last year.

The euro has rallied amid growing signs in financial markets that the three-year debt turmoil is fading and after European Central Bank President Mario Draghi last week signaled no immediate plan to ease monetary policy further.

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