German finance minister - Don't read too much into euro swings
By Annika Breidthardt and Gernot Heller
BERLIN (Reuters) - The European Central Bank (ECB) has assured Germany it is not trying to manipulate the euro, German Finance Minister Wolfgang Schaeuble told Reuters on Tuesday, adding he was not concerned about recent swings in the single currency's exchange rate.
"The president of the ECB confirmed in my presence in Milan (on the weekend) that the ECB is of course sticking to the agreements we have made in the framework of the G7 and G20," Schaeuble said in an interview.
"There is no manipulation of the exchange rate."
France on Tuesday stepped up calls for a further depreciation of the euro against the dollar, implying the ECB should steer the single currency lower to support the economy.
"I still remember the debate from a few weeks ago when the euro, at $1.39, was, if anything, a little too high. Now it is just under $1.30. ... That's the margin there is in the markets," he said.
"One must not read too much into that, neither in the positive nor in the negative sense."
Euro zone central bankers have spelled out the need for a weaker euro to breathe life into the euro zone's economy, which flatlined in the second quarter and is flirting with deflation.
Such comments often prompt fears that one country's bid to become more competitive might trigger a race to devalue currencies and prompt others to resort to protectionism.
But ECB measures that have helped push down the euro to below $1.30 from just under $1.40 in May have drawn few objections apart from calls from France to do more.
Schaeuble said geopolitical factors, such as the Ukraine crisis, trouble in the Middle East, the Ebola outbreak and weaker growth in European neighbours were also weighing on the German outlook but there was "no reason to panic or to be depressed".
"The overall economic forecasts have worsened a little but there is no need to correct fiscal policy," Schaeuble said.
Germany forecasts 1.8 percent economic growth this year and 2.0 percent next year.
(Additional reporting by Matthias Sobolewski; Writing by Annika Breidthardt; Editing by Stephen Brown)
