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ECB chief dismisses talk of currency war, but watching euro

Published on Feb 19, 2013 1:25 AM

BRUSSELS (REUTERS) - European Central Bank (ECB) president Mario Draghi sought to take the heat out of a debate about currency wars on Monday but said the ECB would still have to assess the economic impact of the euro's strength.

"Most of the exchange rate movements that we have seen were not explicitly targeted. They were the result of domestic macro economic policies meant to boost the economy," Mr Draghi told European lawmakers.

"In this sense, I find really excessive any language referring to currency wars," he said, adding that the euro's exchange rate was "around its long-term average".

The euro hit a 15-month high against the US dollar earlier this month, complicating the ECB's policy-making tasks by weighing on growth and feeding expectations that it may have to take fresh policy action, which some ECB members oppose.

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