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ECB President weaken the euro


HB FRANKFURT. Statements by ECB President Jean-Claude Trichet has a strong dollar and continuing worries about the financial stability of Greece have curbed traders said the euro on Thursday. The single currency cost $ 1.4480 in the afternoon to $ 1.4511 in late day before business.

Trichet had said that a strong dollar is important and he supports appropriate comments of the Chief of the U.S. Federal Reserve, Ben Bernanke. According to analysts, this position is not new, but their repetition had strengthened the dollar. The European Central Bank had expected as the market kept its key interest rate at one percent.

Something has slowed the rise in U.S. currency by the unexpected decline in U.S. retail sales in December. "The scenario is a gradual economic recovery, despite the disappointments there," said Helaba economist Ralf Umlauf.

Significant movements in the currency market experts expected only when the U.S. season record clearly takes ride. Commerzbank analyst Antje Praefcke sees the euro so far in a trading range from 1.42 to 1.46 dollars. "One waits to whether the data support the expectation that U.S. interest rates already rising earlier than expected," said Praefcke. "For the euro, but you need to have good arguments from the ECB were no significant signs."

Although the Greek government, a tour de force to balance the budget announcement, the markets remained skeptical. "The efforts of the government debt to be limited, although there are a number of questions remain. Investors want to see more detail how the government intends to achieve its objectives," said Citigroup economist Juergen Michels. Trichet had made it clear that the government could hope for the heavily indebted country’s southern no special treatment. When asked about a possible withdrawal of the country from the monetary union said the ECB chief: ‘I can not comment on absurd assumptions. "