The EU's Economic Affairs Commissioner Olli Rehn has voiced concern at the speed of the fall in the euro’s value against the dollar. His comments came as the single currency dropped below $1.19 for the first time in over four years.
Rehn, speaking ahead of talks with the finance ministers of the 16 euro zone nations in Luxembourg today, said he agreed with Luxembourg's Prime Minister Jean-Claude Juncker that the pace of the drop, rather than the level itself, was cause for concern.
‘We need to reinforce confidence in the European economy,’ stressed Rehn. Juncker is head of the Eurogroup of finance ministers.
The euro dipped below $1.19 in Asian trading for the first time since March 2006, briefly changing hands at $1.1882 in Tokyo before clawing back some ground to around $1.1960.
Analysts blamed the latest falls on continuing concerns about euro zone debt and banking problems, as well as fresh worries about the economic recovery.
Later, it was announced EU finance ministers have agreed to the principle that national budgets should be shown to European partners before they are fixed back home.
EU president Herman Van Rompuy said ministers have agreed to design new sanctions that will allow partners to intervene before countries become too laden down by debt.
