Nov. 2 (Bloomberg) -- The euro’s surge against the U.S. dollar won’t hinder Europe’s recovery from the worst recession in 60 years because revived global trade will blunt the impact of a stronger currency, the Royal Bank of Scotland Plc said.

The CHART OF THE DAY shows that euro-area export-related orders rose in October for the seventh time in eight months, according to data compiled by Markit Economics. The gain came even as competitiveness was hurt by the euro’s 17 percent advance in the same period.

“The impact of world trade on euro-area gross domestic product is more than three times larger than that of exchange- rate movements,” said Silvio Peruzzo, an economist at RBS in London. “In the euro area, world demand matters more than the currency.”

French Finance Minister Christine Lagarde said on Oct. 28 that she wants to see a strong dollar, echoing comments by other officials that the weakening U.S. currency may hinder the nascent recovery in the euro zone by making the area’s exports too expensive. Demand from emerging markets and from within the euro area means that such concerns may be overstated, Peruzzo said.

The euro gained 2.5 percent against a basket of key emerging-market currencies during the same eight months when export orders increased, Peruzzo said.

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To contact the reporter on this story: Jeffrey Donovan in Rome at jdonovan26@bloomberg.net.

Last Updated: November 1, 2009 18:00 EST