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ECOFIN: EU's Juncker: Euro Overvalued, Says IMF Agrees



BRUSSELS -(Dow Jones)- The euro currently is overvalued, Luxembourg Prime Minister Jean-Claude Juncker said Tuesday, arguing that China could help ease the currency's climb by letting the yuan appreciate.

Juncker, who chairs the group of euro-zone finance ministers known as the Eurogroup, told a news conference after the ministers' monthly meeting that the International Monetary Fund shares this view. The IMF's senior official in Europe, Marek Belka, attended Tuesday's Eurogroup meeting in Brussels.

Juncker, European Commissioner for Economic and Monetary Affairs Joaquin Almunia and European Central Bank President Jean-Claude Trichet traveled to China over the weekend to lobby for a stronger yuan.

Juncker said the trio told China that a stronger yuan would help reduce global economic imbalances. He noted he isn't surprised that Chinese officials didn't share this view.

-By Adam Cohen and Nicholas Winning, Dow Jones Newswires; +322-741-1486; adam.cohen@dowjones.com


  (END) Dow Jones Newswires
  12-01-091608ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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