Hollande happy with euro value against the dollar

[VEYRINS-THUELLIN, France] French President Francois Hollande said on Thursday that euro was now at a good level against the dollar, as the single European currency briefly fell below US$1.05 and according to analysts could soon further ease to parity with the US dollar.

"There will be a favourable effect on activity with a euro that is now at a good equilibrium," said Mr Hollande, noting that when the euro was created it was also near parity with the dollar.

The euro, which neared US$1.40 last May, briefly fell below US$1.05 for the first time in 12 years in Asian trading early on Thursday.

The euro has been sliding as the ECB has embarked the week on 1.14 trillion euro stimulus programme, while the attractiveness of the dollar has risen for investors as it appears increasingly likely interest rates will begin rising in the next few months.

AFP