Weidmann Warns Governments Against Trying to Weaken Euro

European Central Bank council member Jens Weidmann said the euro isn’t seriously overvalued and warned governments against trying to weaken the currency.

“Latest indicators don’t signal a serious overvaluation of the euro despite its recent appreciation” and “politicians should hold on to the established division of labor,” Weidmann, who heads Germany’s Bundesbank, said in a speech in Freiburg today. “An exchange-rate policy to specifically weaken the euro would lead to higher inflation in the end.”