German gov't does not see euro as overvalued-spokesman

BERLIN Fri Feb 8, 2013 5:55am EST

BERLIN Feb 8 (Reuters) - Germany does not believe the euro is overvalued and sees the currency's recent appreciation as compensation for its depreciation during the euro zone debt crisis, a government spokesman said on Friday.

Berlin believes exchange rates should reflect economic fundamentals and devaluation is no way to boost competitiveness, as it would make imports more expensive and harm consumers' purchasing power, said spokesman Georg Streiter.

"The German government believes the euro is not overvalued in a historical comparison. The new increase in value is simply a compensation for the massive devaluation during the euro zone crisis. It shows that market trust in the euro is returning."

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