'Eurozone to toughen its line on euro at G7 meeting'
Sunday, 30 September 2007
BRUSSELS, Sept 29 (AFP): Members of the Eurozone are preparing to raise pressure on their Group of Seven (G7) partners over exchange rates, Eurogroup chairman Jean-Claude Juncker told the news agency yesterday after the euro hit a new record.
"We will without a doubt reinforce the message (at the meeting at the end of October) that we have addressed to our partners in previous meetings," said Juncker, who is also Luxembourg's prime minister and finance minster.
The euro went on another record-setting run yesterday against the beleaguered US dollar, smashing through the 1.42-dollar level for the first time to hit a new peak of 1.4243 in late trade in London.
Successive G7 finance ministers meetings have repeated well-worn statements describing "excessive volatility" on foreign exchange markets as "undesirable" despite a steady decline in the dollar's strength in recent years.
Juncker said that the United States, China and Japan "should match their words and their deeds" when Washington repeats its well-worn strong dollar policy and Beijing and Tokyo say that exchange rates should reflect their economies' health.
"We will see at the next G7 meeting at the end of October in Washington if our partners agree to follow their words up with consequential acts," he told AFP by telephone from Luxembourg.
Along with record energy and food prices and financial market volatility, the surging strength of the euro is one of the major factors increasingly weighing on consumer and economic confidence in the 13-nation eurozone.
"We will without a doubt reinforce the message (at the meeting at the end of October) that we have addressed to our partners in previous meetings," said Juncker, who is also Luxembourg's prime minister and finance minster.
The euro went on another record-setting run yesterday against the beleaguered US dollar, smashing through the 1.42-dollar level for the first time to hit a new peak of 1.4243 in late trade in London.
Successive G7 finance ministers meetings have repeated well-worn statements describing "excessive volatility" on foreign exchange markets as "undesirable" despite a steady decline in the dollar's strength in recent years.
Juncker said that the United States, China and Japan "should match their words and their deeds" when Washington repeats its well-worn strong dollar policy and Beijing and Tokyo say that exchange rates should reflect their economies' health.
"We will see at the next G7 meeting at the end of October in Washington if our partners agree to follow their words up with consequential acts," he told AFP by telephone from Luxembourg.
Along with record energy and food prices and financial market volatility, the surging strength of the euro is one of the major factors increasingly weighing on consumer and economic confidence in the 13-nation eurozone.