EU worried by weak dollar

28th September 2007, Comments 0 comments

28 September 2007, PARIS (AFP) - The European Union's economy commissioner said in a newspaper interview Friday the bloc is worried about the low level of the dollar against the euro.

28 September 2007

PARIS (AFP) - The European Union's economy commissioner said in a newspaper interview Friday the bloc is worried about the low level of the dollar against the euro.

However, in an interview with French daily Le Figaro, Joaquin Almunia said European economies are not responsible for the situation.

"It is true that the loss of the value of the dollar worries us," he said, adding "economies of the eurozone are not responsible for the situation."

The euro has been going from record to record against the dollar, on the heels of a batch of soft US economic indicators and the crisis in the US home loan market.

Almunia also said he had heard "the United States say that it was not in their interest to have a weak dollar."

But "from now on we expect a bit of coherence between words and action," he said, suggesting the dollar was perhaps being held at an artificially low level.

"At the same time, we must remain realistic and not dramatise the situation," he said, saying "this rise in the euro is also a sign of investors' confidence in the European economy".

AFP

Subject: French news

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