Duisenberg welcomes recent rise in euro

ECB President has welcomed the strength of the euro versus other major currencies on the foreign exchange markets.

ECB President has welcomed the strength of the euro versus other major currencies on the foreign exchange markets.

Asked at a news conference to comment on recent developments in the euro's exchange rate, Mr Wim Duisenberg said it was "a better reflection than in the past of the economic fundamentals" of the single currency area.

Yesterday and today, the euro was trading at its highest levels in four years, even rising above $1.10.

When it was first launched in January 1999, the euro changed hands at around $1.18 dollars, but it slid as low as $0.823 in the years following.

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Nevertheless, some economic players are concerned the euro's new-found strength could undermine the competitiveness of European exports.

AFP