Although the European Central Bank (ECB) did not take action against the strong value of the euro at a recent policy meeting, it remains a concern for policymakers.
ECB policymaker Ignazio Visco expressed his concern over the strengthening of the euro and said it needed retaliation from the central bank if it pushed inflation further than its target.
Visco, who is also the governor of Italy's central bank, also denied that there were differences of opinion among ECB policymakers on the matter and said his views were to represent the voice of the Executive Board.
According to Visco, the recent strengthening of the euro has sparked central bank concerns as it has led to lower price pressures on already weakening inflation.
He stressed that if the pressure from the euro strength affected the price stability target, then the central bank should intervene.
The euro traded at $ 1.2011, the highest level since mid-2018 earlier this month, but it later wiped out almost half of its gains this year by trading around $ 1,163 against the US dollar in today's Asian session.
Meanwhile, ECB President Christine Lagarde's speech tonight will be the main focus of the market to get more clues on the central bank's views on current monetary policy.
