Another top official at the European Central Bank has made a thinly veiled swipe at the Trump administration, following comments by Treasury Secretary Steven Mnuchin that caused the dollar to slump against the euro.
The greenback tanked to a three-year low Wednesday after Mnuchin said a weaker dollar is beneficial for the country. The dollar slide is causing jitters in Europe, where a stronger euro could impact export-focused companies and jeopardize ECB plans to reduce monetary stimulus.
"We've seen lots of volatility being created recently by different statements — I think that's not helpful," Benoit Coeure, executive board member of the ECB, said Friday at a panel at the World Economic Forum in Davos.
"Any discussion on the exchange rates should be sent back to where it belongs, which is multilateral bodies, which is G-7 and G-20," he said.
"Volatility isn't helpful, and if that would reach a point where this would create any unwanted consequence for us, any unwanted tightening of monetary policy, we would have to reassess," Coeure added.
The euro hasrisen in the last few months due to the economic recovery in the region, but the appreciation has also been largely fueled by a weaker dollar. A stronger euro could affect inflation in the euro zone — which the ECB has tried to support in the last few years — potentially prompting a change in its policy.