Cyprus, Slovenia concerned about euro rise

Euro zone members Slovenia and Cyprus said on Wednesday they were concerned by the recent appreciation in the value of the euro and its impact on competitiveness and exports from the single currency bloc.
"The level of the euro, the recent appreciation … is hindering our exports and competitive position," Finance Minister Charilaos Stavrakis told reporters. He was speaking after a meeting with visiting Slovenian Finance Minister France Krizanic.
Slovenia and Cyprus are two of the euro zone's smallest member states. Cyprus represents 0.2% of the euro zone economy and Slovenia 0.4%, according to the most recent European Central Bank data.
Krizanic told reporters that the euro's levels earlier this year, when it was weaker than now, had aided euro zone recovery in the second quarter. "We hope that the level achieved in May and June stay stable. It is a level around 1.20, or a little more," he said.
The euro has since strengthened against the dollar as concerns about the euro zone debt crisis have eased slightly and on the view that the European Central Bank will raise interest rates before the United States. It was trading at $1.3955 on Wednesday, up 0.2% on the day. Stavrakis also said that larger European countries like Germany could afford to adopt fiscal expansionary policies to stimulate growth in the 16 member euro zone.
"If big European countries do more to inflate their economies, and the euro does not further appreciate — and ideally falls slightly — this would be good news for our export industries," Stavrakis said.