European Central Bank Monitors Euro Rise While Maintaining Policy Stability

The European Central Bank has reiterated that it is closely monitoring the recent euro rise in foreign exchange markets, while stressing that the movement does not currently warrant concern, according to Governing Council member Yannis Stournaras.

Stournaras noted that the euro rise aligns with projections made since March 2025, emphasizing that the single currency remains within its historical trading range against the US dollar.

Euro Rise Within Expectations

He explained that most of the euro rise occurred during the first quarter of last year and was not significant enough to prompt a shift in the ECB’s monetary policy stance.

The ECB continues to monitor exchange rates alongside inflation and economic activity indicators, maintaining that current developments remain consistent with its baseline outlook.

Interest Rates Held Steady

The comments followed the ECB’s decision to keep its deposit rate unchanged at 2% for the fifth consecutive meeting.

ECB President Christine Lagarde stated that policymakers consider themselves well positioned, downplaying the recent strength of the euro.

The central bank had previously implemented a series of rate cuts until June 2025, after the deposit rate stood at 4% in spring 2024—double its current level—before stabilizing at 2%.