Forex News
February 18, 2013 @ 2:17 pm

EBC’s Nowotny says euro exchange rate within normal range

European Central Bank policymaker, Ewald Nowotny, gave some support to the euro on Monday after saying that the “euro’s exchange rate should not be dramatised”.

“The euro-dollar exchange rate is in a region we’ve had before,” Nowotny told reporters in Vienna today.

“There is an appreciation of the euro to the yen, but not to a dramatic extent. That means if it stays as it is now, this discussion isn’t real.”

“The euro’s gains against the Japanese yen are also not dramatic”, Nowotny added.

This helped support the euro from a further drop as Nowotny  played down worries on the euro exchange rate.  He explained that the single currency was moving within standard exchange rate ranges and he added that growth in the euro zone should start to pick up again soon.

His  comments come after a series of weak euro zone data last week, showing GDP  in the bloc had contracted while Germany, seen as the region’s powerhouse, also showed weak growth.

Against the yen the euro has gained more than 9.5 percent this year and against the dollar, the euro is up 2.9 percent this month, its best month since October 2011.However the single currency is likely to remain vulnerable after last week’s economic data revealed a deeper-than-expected recession in the region.

Meanwhile elections in Italy are in focus and could pressure euro further.

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