Feb.07 - European Central Bank President Mario Draghi said the bank will monitor the economic impact of a strengthening euro, feeding expectations the climbing currency could open the door to an interest rate cut. (ROUGH CUT - NO REPORTER NARRATION)
(ROUGH CUT - NO REPORTER NARRATION) The European Central Bank President will monitor the economic impact of a strengthening euro, ECB President Mario Draghi said on Thursday (February 7). After the ECB left its main interest rate 0.75 percent, Draghi said the exchange rate was near to its long-term average but went further than many analysts had expected. He described the appreciation as a return of confidence, and he said the exchange rate is not a policy target. The euro hit a 15-month peak of $1.3711 on February 1. The ECB didn't take any monetary policy action, but it and Ireland reached a compromise on a long-standing dispute over the cost of servicing money borrowed for failed Anglo Irish Bank. Draghi was pressed about what he knew of the derivatives scandal at Italy's Monte dei Paschi bank, and what he did about it when he headed Italy's central bank from 2006 to 2011.