ECB member warns against trying to weaken euro

Published: 05:10:52 PM, Mon 11 February 2013 UTC

FRANKFURT, Germany (AP) — A member of the European Central Bank's governing council has warned that any government attempts to push the euro lower could backfire.

Jens Weidmann said Monday in the text of a speech that "politically brought about devaluations" do not lead to improved economic competitiveness. He also said indicators suggest the euro is "not seriously overvalued."

The euro has strengthened recently, raising concern it will hurt exports from the 17 euro countries. French President Francois Hollande has suggested the eurozone needs to manage its exchange rate.

Weidmann sits on the ECB's 23-member rate setting council and heads Germany's Bundesbank national central bank.

ECB President Mario Draghi indicated the bank does not seek any particular exchange rate, which is set by markets, but is monitoring the stronger euro's effect on inflation.

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