Euro rises versus dollar as Lagarde reiterates ECB doesn’t target exchange rate

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The euro extended a gain versus the U.S. dollar Thursday after European Central Bank President Christine Lagarde, in a news conference, said the Governing Council “extensively” discussed the recent strength of the shared currency, but reiterated that the bank doesn’t target the exchange rate. At the same time, a Bloomberg report said that members of the council had agreed to not overreact to euro strength. In her opening statement, Lagarde said the appreciation of the euro was among factors holding down inflation. The euro last week briefly topped the $1.20 level versus the dollar for the first time in more than two years, but then turned south after ECB chief economist Philip Lane said the exchange rates does matter to monetary policy. The euro on Thursday was up 0.7% at $1.1897.
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