Trichet says disorderly FX moves undesirable

European Central Bank President Jean-Claude Trichet said disorderly swings in currencies were undesirable, according to an interview with a French magazine.

“In the present circumstances, I am concerned by excessive exchange rate movements,” he told Le Point.

He stressed the importance of ensuring medium-term price stability at a time when the price of oil and other commodities was rising.

“If we were no longer credible in ensuring price stability, households would lose confidence, and the financial markets themselves would be more turbulent, because they would be troubled by uncertainty over inflation in the medium term,” he said.