German Chancellor Angela Merkel dismissed attempts to manipulate exchange rates, saying the present value of the euro against the dollar is within the currency’s normal range.
Merkel, speaking in Berlin today, acknowledged concerns over the euro’s strength in southern European countries that have been “at pains to lower their labor unit costs in a fixed exchange rate regime” only to see the gains “melt away like the snow in the sun under certain conditions.”
“On the other hand, we have to say that euro exchange rates between $1.30 and $1.40 are part of the normality of the history of the euro,” she told an event marking 50 years of the German government’s council of economic advisers. The euro bought $1.3375 as of 3:55 p.m. in Berlin.
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