BERLIN (MktNews) - The European Central Bank (ECB) is interested in a strong euro on foreign exchange markets, and is confident that this will eventually occur, given the economic fundamentals of the eurozone, ECB Governing Council member Ernst Welteke said Monday.
"As you know, we central bankers are interested in a strong euro on foreign exchange markets and this will occur in time, when its foreign exchange rate reflects the domestic economic situation," Welteke told reporters.
Earlier, Welteke said that the foreign exchange rate of the euro had weakened against the dollar because of market expectations that the U.S. economy will rebound soon.
"The euro is weak because the markets see the U.S. weakness as being only short-term," Welteke said.
The central banker also noted that inflationary pressures in the eurozone are falling. "If we consider the two pillars (of ECB policy) we can see easing inflationary pressures in both pillars," Welteke said. ECB policy is based on developments in M3 money supply and on a broad range of factors that influence price stability.
Asked if he was concerned about excessive wage demands, Welteke replied: "I can only advise the unions to trust that the ECB will ensure price stability."