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France Says Surging Euro 'Too High'
Reuters | January 31, 2013 | 06:36 AM EST

The French government sounded the alarm on Wednesday about the surging value of the euro, vowing to raise the issue with euro zone and G20 partners as concerns about currency wars flare.

The euro has risen to a 14-month high against the dollar and hit its highest level in 33 months against the yen, making euro zone exports dearer on international markets.

"The euro is too high compared with what the European economy deserves," Industry Minister Arnaud Montebourg told reporters.

"We are paying close attention to this question, which will be debated in the Eurogroup (of euro zone finance ministers) and which the president, prime minister and French government are following closely," he added.

The United States and Japan are pumping vast amounts of liquidity into their economies to revive growth, which has had the knock-on effect of weakening their currencie sagainst the euro.

Th eBank of Japan announced last week, in its most determined effort yet to end years of economic stagnation and deflation, that it would buy unlimited amounts of assets in 2014 and double its inflation target to 2 percent.

Officials from the Group of 20 economic powers say that although top economic policymakers are likely to discuss how Japan's new monetary stance is weakening the yen when they meet next month, they will stop short of calling it a competitive devaluation.

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