(Reuters) - Boston Federal Reserve bank President Eric Rosengren said the rise of the dollar against currencies like the yen and euro reflects the strength of the U.S. economy and doesn't indicate a currency war is developing.
"Various economies are in very different positions," Rosengren said following a speech on Monday, noting that the U.S. economy was likely to grow "closer to three percent" while Europe's economy was not doing nearly as well.
"That divergence is going to cause divergence in exchange rates," he said.
As long as the dollar's rise "is not done for manipulative reasons but instead reflects actually different places where the economies are, I think that is kind of a natural way that financial markets work. At least to date...it does not particularly concern me."
reuters.com
"Various economies are in very different positions," Rosengren said following a speech on Monday, noting that the U.S. economy was likely to grow "closer to three percent" while Europe's economy was not doing nearly as well.
"That divergence is going to cause divergence in exchange rates," he said.
As long as the dollar's rise "is not done for manipulative reasons but instead reflects actually different places where the economies are, I think that is kind of a natural way that financial markets work. At least to date...it does not particularly concern me."
reuters.com
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