17.03.2014 - Europe’s leaders warn currency volatility could harm the recovery
Two years ago, European businesses were worrying about whether the euro would survive. Today, a bigger problem for many of them is its strength. With the single currency at its highest level since mid-2011 on a trade-weighted measure, politicians are warning that adverse exchange rates could stall the eurozone’s fragile recovery. While the euro’s rise against the dollar has been fairly moderate, turmoil in emerging currencies has stung many multinationals – which had bet heavily on growth in emerging economies in recent years to compensate for the lack of activity in their home markets, but now find themselves exposed to swings of as much as 20 per cent between the worst-hit local currencies and the resurgent euro...............................................Full Article: Source
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