BERLIN Feb 20 States should not attempt to
actively influence their currencies' exchange rates, German
Chancellor Angela Merkel said on Wednesday, adding that the euro
trading between $1.30 and $1.40 was not out of the ordinary.
"We are not in favour of an active exchange rate policy,"
Merkel said at an event to mark the 50th anniversary of the
government's panel of economic advisers. She added heads of
state and government would take a look at a Group of 20 summit
in September whether all member states had stuck to free and
market based rates.
"We are seeing fears and concerns in southern Europe, where
people are working very hard with stable exchange rates to
reduce labour unit costs and are now seeing that this can melt
away like snow in the sun, but on the other hand a euro between
$1.30 and $1.40 is normal in the historical perspective of the
euro," Merkel said.