The euro is falling fast against the U.S. dollar after a headline crossed reporting a comment from Jean-Claude Juncker, President of the Euro Group of eurozone finance ministers.
Via Bloomberg, Juncker said the euro exchange rate is “dangerously high.”
The euro, which was trading around 1.3340 against the U.S. dollar when Juncker’s comments crossed, is plummeted to a low of 1.3263 before bouncing back slightly (click to enlarge):
Juncker’s comments highlight one of the fundamental problems the eurozone faces right now. Too high of a euro makes exports to areas outside the currency bloc less competitive vis-a-vis world competitors.