THE TELEGRAPH: The euro has surged to an all-time of $1.48 against the dollar, prompting bitter protests from European export industry and hints of possible intervention from top EU officials.
Jean Claude-Juncker, chair of the Eurogroup of finance ministers, said the dramatic rise in the currency since August had begun to inflict damage on vulnerable parts of the 13-nation bloc.
'We deplore the sudden changes in the exchange rates. We will be keeping a very watchful eye on the exchange rate markets,’ he told the European Parliament. Mr Juncker said the countries worst effected were those that “haven’t done enough to increase their competitiveness”, a reference to the southern tier of states that let rip on inflation after the launch of the euro and failed match Germany in holding down costs.
Mr Juncker is leading an EU troika to Beijing next week to pressure the Chinese authorities into speeding up the glacial pace of yuan revaluation. China’s currency is linked to the dollar by a crawling peg. It has been steadily falling against the euro, even though China’s trade surplus with Europe has reached $135bn over the last year, up 46pc. Protest grow as Euro hits $1.48 By Ambrose Evans-Pritchard
Mark Alexander
