Euro zone finance ministers have welcomed the single European currency’s recent fall against the dollar, but France’s Christine Lagarde said it is still as much as 20% overvalued. She and other ministers also criticised exchange rate volatility.
Those comments came at the monthly meeting of the ministers and the European Central Bank.
In the past year, the euro has surged against the dollar as US interest rates were cut. It hit a record high of $1.6018 on 22 April, since when it has fallen 3.8% as markets took a more optimistic view of the United States economy amid signs of a slowdown in the 15 countries using the single currency.