FRANKFURT (AFX) - European Central Bank president Jean-Claude Trichet repeated that the euro's rise against the dollar is unwelcome and said intervention in foreign exchange markets "is a weapon" that is available to central banks
But Trichet declined to be drawn further on the possibility of the ECB intervening in markets to halt the euro's rise
"We consider the recent (euro) moves are unwelcome," he told a news conference after the ECB governing council elected to leave the bank's key interest rate unchanged at 2.0 pct, as expected
And he said intervention "is a weapon" that is available to the ECB and other central banks, but he declined to comment further on intervention
"It goes without saying that intervention is a weapon that exists and that exists historically in all major partners, and I confirm to you that I never comment on such matters," he said
And he called for "verbal discipline" from others in their comments on exchange rates
"Verbal discipline is really of the essence," he said
Trichet said he was not targeting anyone in particular with this remark
"It's a general remark that is not addressed to any particular audience or constituency," he said
But economists said Trichet may have had in mind recent comments on the possibility of intervention by Japanese monetary officials
Trichet said the exchange rate is one factor, among many, that the ECB takes into account in its economic analysis and its deliberations on interest rates
He declined to comment on whether or not current exchange rates reflect economic fundamentals
Trichet says euro rise unwelcome, intervention an available weapon
notíCIas_pt
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02-12-2004 11:42
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