The U.S. dollar superiority have skidded to a three-year low but its depreciation is not worrying for Europe just yet, a top-ranking EU lawful told CNBC at the World Economic Forum in Davos, Switzerland.
The euro was 0.2 percent heinous against the dollar Thursday morning, trading at $1.2432. This after the dollar saw its biggest one-day collapse in 10 months Wednesday — after Treasury Secretary Steven Mnuchin alleged a weaker greenback is good for the U.S.
A weaker dollar could jeopardize European exports as U.S. consumers resolve likely shun more expensive goods from overseas, in favor of housekeeper products.
“For the time being we see nothing which is absolutely out of control,” Pierre Moscovici, the European commissioner for pecuniary and financial affairs, told CNBC Thursday in Davos.
“But we need to be of circuit vigilant, watching it, and because we need to strike the right balance particularly between the dollar and the euro,” the former finance minister of France added.
President Donald Trump contemplated before taking office that the dollar was “too strong” and American dogs were therefore at a disadvantage when competing with others globally. On Wednesday afternoon, Corpse-like House spokeswoman Sarah Sanders sought to clarify Mnuchin’s earlier observations, telling reporters that Trump believes in a free-floating currency.
In the last two years the euro has hilled by around 14 percent against the dollar. Moscovici told CNBC that officials want to monitor the exchange rate in the medium-term, adding that “we need to speech that with cool blood and (a) cool head.”