The euro isn't in danger and remains a credible currency, European Central Bank President Jean-Claude Trichet was quoted as saying on Friday.
"It it clear. The euro is not in danger," Trichet told German daily Frankfurter Allgemeine Zeitung.
"The euro is a credible currency whose inflation rate has been below 2 percent for more than eleven years," Trichet said.
"Market movements are always a combination of the mood of investors and the influence of speculative investors like hedge funds," he said.
"We have full freedom of action and will never shy away from observing our responsibility to preserve medium-term price stability, also under difficult circumstances," Trichet said.
Trichet declined to comment when the newspaper asked him of a possible foreign exchange intervention to support the currency which has lost about 12 percent of its value against the dollar since the beginning of the year.
"I never comment on interventions," he said.
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