The euro will rise in the medium term, but may not appreciate imediately after the euro rollout on January 1, 2002, European Monetary Affairs Commissioner Pedro Solbes said on Tuesday.
"In the medium term the euro will be a strong currency," he told reporters as attended a press event linked to the physical introduction of euro notes and coins in the 12-nation euro zone.
But asked whether the euro launch would lead to an immediate increase of the euro value on the foreign exchanges, he said: "Not necessarily. It will depend."
Solbes said a range of factors, including growth and interest rates differentials and investments flows, had been used to try to explain moves in the euro's exchange rate. "None of them explains exactly what is happening," he said.
But he added: "It will be positive to have notes and coins in the pockets of European citizens and also in other citizens' (pockets)."
Asked about inflation, Solbes said the decline foreseen in early 2002 could be a little sharper than expected.
"We have always said the rate of inflation would be below two percent in the early months of 2002. This decline is probably a bit sharper than we had thought."
But he said the euro zone's fundamentals were still positive.