The euro has gained ground on Thursday afternoon after comments from European Central Bank (ECB) president Mario Draghi on the strength of the single currency.
ECB officials had earlier agreed to keep the Bank's main policy settings on hold: the main refinancing rate at 0% and net monthly asset purchases of €30bn until September - "or beyond, if necessary".
Dollar weakness criticised
In the press conference that followed, Draghi was more candid, taking a sideways swipe at the US for talking the dollar down after Steven Mnuchin (left) said in his address at Davos on Wednesday that the US was happy with a weaker dollar.
Draghi, without ever directly naming either Mnuchin or the US, lamented on the breaking of an agreement between leading monetary authorities on talking down currencies.
"The riposte will be that this is just the pot calling the kettle black given the ECB negative interest rate policy," says Claus Vistesen at Pantheon Macroeconomics.
While Draghi retained the view that current policy settings were appropriate given the outlook for inflation, he said the main risk to growth was euro appreciation, which would need to be "monitored".
He added, however, that growth in the eurozone had taken a stronger turn than expected and concluded that "by and large, the risks to growth are balanced".
Timothy Graf at State Street Global Markets, says: "Draghi has done enough to keep euro bulls happy in not pushing back too much against the recent strength in the single currency.
"So long as the rate of appreciation remains well contained, it seems like the central bank is willing to live with euro strength as a consequence of the success of its past easing efforts.
"The message that the ECB will be slow to remove accommodation remains clear and the inclusion of language about the volatility of the euro acknowledges what has become an overwhelmingly consensus euro appreciation bias."