| US urged to halt dollar slide Gulf
Daily News BRUSSELS: Worried euro zone policy makers yesterday pressured Washington to do more to limit the dollar's slide after it hit its lowest ever value against Europe's single currency. While finance ministers raised the tone of their complaints, saying exchange rates were no longer in line with economic reality, there was no mention - implicit or explicit - of any direct central bank intervention to influence currency markets. Belgium's representative at the European Central Bank Guy Quaden said: "Things are becoming exaggerated." "It's up to the relevant authorities to assume their responsibilities and particularly for US authorities, who repeat that they are in favour of a strong dollar but who should reaffirm their words," he said.
The Europeans seemingly fear the dollar slide, which makes life harder for euro zone exporters, may get out of hand after the dollar sank below $1.50 per euro last week. It hit a new low on Monday at $1.5275 per euro, and was trading not far from that level yesterday as European finance ministers met for a second day of monthly economic policy deliberations here. Belgian Finance Minister Didier Reynders delivered much the same message, less bluntly than Quaden. "There's a limit. The feeling is the dollar is more of a problem nowadays than the euro. What reassures me is that the American authorities seem to be realising this and they want a strong dollar. I'm quite happy with this development." French Prime Minister Francois Fillon added his voice to the rising chorus of complaint, echoing declarations at a the meeting of the euro zone's finance ministers and ECB president Jean-Claude Trichet. "There is a problem in the relationship between the dollar and the euro," he said, adding that exchange rate developments were partly to blame for the rising price of commodities, which from oil to wheat are soaring. Yesterday's talks were broadened to ministers from all 27 European Union countries.
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