European business leaders yesterday stepped up their warnings about the impact of a soaring euro as the currency hit a fresh record against the dollar - although data on eurozone exports revealed little economic effect so far.
"Unduly rapid movements on foreign exchange markets are an increasing source of concern," the leaders of the German, French and Italian business federations and BusinessEurope, the employers' association, wrote in an open letter to European politicians.
Their comments came as the euro rose above $1.43 for the first time and ahead of this weekend's meetings in Washington of the G7 leading economies.
The European business leaders urged "clear commitments" from the G7 members on tackling the forces that are pushing the euro higher.
However, the impact of a stronger currency remains hard to discern from economic data. Exports from the 13-country eurozone increased by 4.9 per cent in August after a fall of almost 1 per cent in the previous month, according to data released by Eurostat, the EU's statistical office.
Apart from exports to the US, which fell slightly, exports to the eurozone's main trading partners have been brisk so far this year, according to the latest data.
Exports to China and Russia between January and July increased by 15 per cent and 28 per cent respectively, the data showed.
Exports to the UK - the eurozone's biggest export market - were up by 6 per cent.
The latest figures are likely to reinforce the view, prevalent in Germany and at the European Central Bank (ECB), that the impact of the euro's rise against the dollar should not be exaggerated.
Germany's Bundesbank argued earlier this week that the pace of growth in foreign markets was the more decisive factor for German exports. It described as "only limited" the effect of the stronger euro on Germany's economy.
The strength of eurozone exports in August heightened expectations that data for overall economic growth in the third quarter - to be published next month - would show a significant rebound after a weak second quarter.
Economists believe that gross domestic product may have risen by as much as 0.7 per cent, after 0.3 per cent in the previous three months.
Axel Weber, Bundesbank president, who sits on the ECB's governing council, has actively kept alive the possibility of further interest rate rises, in comments that may have helped underpin the euro's strength.
With inflation risks increasing, it was "important for our monetary policy to keep an eye on price stability in the medium term", he said yesterday.
So far the ECB has maintained a "wait and see" stance on future interest rates moves, pending more information about the effects of the global credit squeeze on the eurozone economy. The European business leaders said that politicians should send "clear and common signs that would help foster confidence and encourage companies to continue investing and hiring to support self-sustaining growth on our Continent".
