ECB's Praet says euro fx rate within normal range

MUNICH Tue Oct 15, 2013 3:42pm EDT

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MUNICH Oct 15 (Reuters) - The euro is trading within a relatively normal band in foreign exchange markets at the moment, European Central Bank Executive Board member Peter Praet said on Tuesday, indicating it is not a great worry for the central bank.

Praet, who has the powerful economics portfolio within his remit, also said that U.S. budget problems were not affecting the central bank's monetary policy yet.

"We are in a relative normal range in euro foreign exchange rate," Praet told reporters after a speech at the Bavarian Economic Club.

"I don't see for the time being any impact from the U.S. on our monetary policy ... it's marginal and we hope it will be settled."

Praet added that he was confident that a solution would be found and that reason would prevail. But he also repeated ECB President Mario Draghi's words, saying that if no solution is found, it would have catastrophic consequences.

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