The euro fell under pressure on Wednesday after Jean-Claude Juncker commented that the exchange rate for the euro was dangerously high. The common currency traded at 1.3307 on Wednesday morning.
The euro climbed in 2013, as investors gained confidence in the region and many started to believe that the worst was over for the eurozone financial crisis. After a three year battle with debt, European Central Bank President Mario Draghi sparked a euro rally last week after he announced that there would be no change in interest rates and that there were no plans to ease the region's monetary policy in the near future.
Draghi's positivity gave the currency a boost, and it traded above $1.34 for the first time since February of 2012. However, according to Bloomberg, following Juncker's remarks on Tuesday, the euro dropped 0.9 percent and continued its decline well into Wednesday morning.
Juncker's statements came days after Draghi refused to comment on exchange rates following the ECB meeting, claiming they were not an ECB policy target.
Some analysts agree with Juncker's view that the current exchange rate is bad for the eurozone economy. A weakened euro could be a way to increase exports and make eurozone countries more competitive within the global market.
The eurozone wouldn't be the first to consider the benefits of a weaker currency; banks in both Canada and England have publically admitted that their currency's strength has weighed on their exports.
In Switzerland, the government is actively blocking the franc's appreciation and Japanese Prime Minister Shinzo Abe's new more aggressive central bank has driven down the yen.
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