Eurogroup’s Juncker main fx rates too volatile

LUXEMBOURG, Oct 15 (BestGrowthStock) – Exchange rates between the
main global currencies are too volatile, the chairman of euro
zone finance ministers Jean-Claude Juncker said on Friday as the
euro hit 10-month highs against the dollar.

“There is too much volatility between the main global
currencies,” Juncker said. “The yuan…is largely undervalued…
and … is wrong to follow the dollar in all its erratic
movements,” he said.

The euro rose as high as $1.4161 (EUR=EBS: ), its strongest
level since late January, from $1.4092 after after Federal
Reserve Chairman Ben Bernanke said there was a case for further
monetary policy action, given low U.S. inflation and high
unemployment.

Speaking at a panel discussion, Juncker said he did not
believe the fall of the dollar was a result of a deliberate
policy and he did not expect any concerted action to stop it.

Against the yen, the dollar fell below 81 yen (JPY=EBS: ) and
was last at 81.06, down 0.5 percent and Japanese Prime Minister
Naoto Kan was quoted as saying the yen’s strength was “extremely
excessive” and needs to be halted in the short term.

This raised the possibility of another Japanese intervention
on the foreign exchange market (Read more about international currency trading. )s, as in September.

Juncker said the yen was not too strong.

“There is no dynamic growth in Japan — this is down to the
fact that in the eyes of the Japanese, not in my eyes, the
Japanese currency is too strong,” he said.

(Reporting by Michele Sinner, editing by Timothy Heritage)

Eurogroup’s Juncker main fx rates too volatile