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Recent euro moves not worrying - Juncker

Published 07/17/2009, 06:58 AM
Updated 07/17/2009, 07:00 AM

LUXEMBOURG, July 17 (Reuters) - The recent appreciation of the euro against the dollar is not structural and therefore not worrying, the chairman of euro zone finance ministers, Jean-Claude Juncker, said on Friday.

"I don't think that we are facing a strengthening -- in a structural sense -- of the euro, so recent moves are not worrying," he told Reuters.

The euro firmed to $1.4146 on Thursday from $1.3830 on July 8, and has been rising steadily from $1.2455 at the start of March. European exporters say the pain threshold for them is an exchange rate above $1.40.

Asked about concerns among European businesses that banks are not lending enough to help revive economic growth and are failing to pass on the liquidity injections they receive from the European Central Bank, Juncker said:

"Banks throughout the EU and mainly throughout the euro area have to take on board the concerns of the business community. It is my impression that banks are still hesitating to take their responsibilities." (Reporting by Michele Sinner; Writing by Jan Strupczewski, Editing by Dale Hudson)

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