April 10, 2008 / 1:34 PM / 11 years ago

Trichet says deplores excessive forex volatility

FRANKFURT, April 10 (Reuters) - European Central Bank President Jean-Claude Trichet said on Thursday that the recent volatility on foreign exchange markets was excessive and was to be deplored.

“I deplore the excessive volatility of exchange rates. I was concerned by the recent excessive moves,” Trichet told a press conference held after the ECB held its key interest rate at 4.0 percent.

Trichet had been asked to comment on the euro-sterling exchange rate after the pound reached a record low against the common currency on Wednesday. But he widened his answer to include the euro’s recent appreciation against the dollar.

“I have observed with great, great attention and interest what has been said by the U.S. authorities including the highest authority which is the President of the United States,” Trichet said.

The United States government has regularly stated that it is in favour of a strong dollar.

“On the UK, I would say it is clear that excessive volatility is certainly not welcome for any of us and I guess that it is not welcome for the United Kingdom,” he added.

The Bank of England cut its key interest rate by a quarter point to 5.0 percent earlier on Thursday. (Writing by Gerrard Raven +44 20 7542 4868, editing by David Stamp)

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