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Euro Rallies to 1.34 as ECB Official Says It Isn’t Overvalued

The euro rose against the majority of its 16 most-traded peers after European Central Bank council member Jens Weidmann said the currency isn’t seriously overvalued.

The shared currency extended gains against the dollar after Weidmann, who heads Germany’s Bundesbank, warned governments against trying to weaken the euro. The yen depreciated to the weakest level in almost three years versus the dollar as Economy Minister Akira Amari was reported by Kyodo News as saying the government should persevere with efforts to boost stocks. Sweden’s krona strengthened amid a forecast for the Riksbank leave the benchmark rate unchanged.

“The move came on the back of the comments from Weidmann,” Nick Bennenbroek, the head currency strategist at Wells Fargo & Co, said in a phone interview. “The ECB and its finance ministers have the primary influence over European currency policy, and the overall weight of comments from policy makers like Weidmann highlight their influence on the exchange rate.”

Bloomberg [1]

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