Euro zone finance ministers and the European Central Bank last night voiced concern over large currency swings that have recently hoisted the euro to record highs against the dollar.
They issued a joint statement before the Group of Seven economic powers meeting on February 6-7th, saying the euro zone was sticking to the position that the single currency should trade in line with economic fundamentals in the medium and long term.
But the ministers and the ECB made no mention of the "strong and stable" euro mantra previously used and instead stressed their discontent about the pace of euro gains, which they fear risks choking exports and stunting economic recovery.
"In the present circumstances we particularly stress stability and we are concerned about excessive exchange rate moves," said the statement issued after talks in Brussels. "We will continue to monitor the situation closely, and conduct policies supporting economic recovery in a stable macroeconomic environment."
They spoke of no contingency plans for tackling any fresh bout of volatility in currency markets.
German Finance Minister Mr Hans Eichel said he was happy the ministers and ECB had forged a consensus before the G7 economic powers - the United States, Canada, Japan, Germany, Britain, France and Italy - meet in Boca Raton, Florida.