5 January 2004, 11:16  German firms put euro's pain barrier at $1.30-Ifo

BERLIN, Jan 5 - A rise by the euro above $1.30 would hurt German exporters and could call into question growth forecasts, the Munich-based Ifo economics institute was quoted as saying on Monday. Ifo head Hans-Werner Sinn said in an interview with German daily Berliner Zeitung on Monday that a survey of firms showed they believed exporters could suffer despite currency hedging if there was a rise beyond that level against the dollar. "Things would then get really tough for exporters," he said. The euro touched a fresh peak of $1.2672 on Monday before retreating to $1.2665 at 0652 GMT. Sinn warned that a further strengthening in the European single currency could hurt a recovery in Germany and any pain to exporters could mean 2004 growth forecasts of around two percent would be hard to meet.//

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