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How strong is the euro really? Despite European policymakers' alarm over its run to 2-1/2-year highs against the dollar, several factors governing exchange rates imply the single currency's bout of strength is far from over.
European Central Bank boss Christine Lagarde said on Thursday the bank was closely watching the euro, which surged 9% last year to above $1.23, its biggest annual gain in four years..
The currency's strength is a headache for the ECB which is struggling to somehow get inflation towards the 2% mark and saw it stay below 0% in December for the fifth straight month.
LONDON (Reuters)
European Central Bank boss Christine Lagarde said on Thursday the bank was closely watching the euro, which surged 9% last year to above $1.23, its biggest annual gain in four years..
The currency's strength is a headache for the ECB which is struggling to somehow get inflation towards the 2% mark and saw it stay below 0% in December for the fifth straight month.
LONDON (Reuters)
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