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Monday 24 July 2017

Intervention to halt euro slide isn't urgent: Juncker

Jean-Claude Juncker, Luxembourg's prime minister and president of the Eurogroup. Photo: Bloomberg News
Jean-Claude Juncker, Luxembourg's prime minister and president of the Eurogroup. Photo: Bloomberg News

Toru Fujioka

Luxembourg Prime Minister Jean-Claude Juncker, who leads the group of euro-area finance ministers, said that while the pace of the euro’s decline is a concern, foreign-exchange intervention isn’t an urgent issue.

“I’m a little bit concerned by the rapidness” of the euro’s slide, Juncker said to reporters today. When asked about intervention, he said: “I don’t think this is a matter of immediate action.”

Juncker’s comments come a day after the currency shared by 16 European Union members reached the lowest level in four years against the dollar.

The currency has depreciated against the dollar and yen as EU leaders failed to contain a crisis of confidence in Greece’s debt.

The euro traded at $1.2329 as of 11:09am in Tokyo from $1.2415 late in New York yesterday, when it rose 1.8pc. The currency fell to 113.04 yen from 113.85 yen.

Euro area policy makers last week unveiled an unprecedented loan package worth €750bn and a program of bond purchases to forestall defaults of the region’s most indebted countries, including Greece, Spain and Portugal.

Group of Seven nations haven’t mounted a coordinated intervention in the currency market since 2000, when central banks in Europe, the US and Japan jointly bought euros to stem its decline.

The euro later saw years of appreciation against the dollar, rising as high as $1.6038 in July 2008.

Bloomberg

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