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European Central Bank officials rarely comment on the Exchange Rate: the euro has risen above 1.20, and the situation has become complicated.
Jin10 data reported on July 1st that European Central Bank Vice President Guindos stated that a euro to dollar exchange rate breaking 1.20 could pose a challenge for policymakers, but the current level is not a cause for concern. In a rare comment from European Central Bank officials regarding the euro exchange rate, Guindos expressed that the speed of the euro’s rise is more concerning than the current level. “I think 1.17, even 1.20 is nothing to worry about; we can overlook it a bit. Beyond 1.20, the situation would be much more complicated. But 1.20 is completely acceptable.”