European Central Bank chief Jean-Claude Trichet has said fears that the euro zone might break up under the strain of the global financial crisis are 'unfounded'.
He was speaking in response to a question in the European Parliament. Trichet said that all currencies are under pressure due to the economic crisis and that all currencies are 'undergoing a test'.
Trichet expressed optimism that the euro area economy would pick up next year, after what he predicted would be a difficult 2009.
In a later interview with CNBC television, Trichet said that further interest rates could not be ruled out, although it was not the ECB's intention to cut rates to 'very low levels'.
The ECB has slashed interest rates by a total of 225 basis points since early October in a bid to stave off what threatens to be a deep and painful recession in the 16-country zone.
Last week, the bank decided to cut rates to 2% from 2.50%.
