European Central Bank board member Demarco said that if the Euro reaches 1.25 US dollars, it is not the end of the world.

European Central Bank Governing Council member Alexander Demarco told Econostream that if the euro were to rise further above 1.20 US dollars, the European Central Bank would not have to be overly worried. In an interview on Thursday, Demarco said, "Past research shows that the equilibrium exchange rate may be around 1.20 to 1.25 US dollars, and the current exchange rate is still some distance from that level. Even if it reaches that level, it is not the end of the world." Demarco also stated that given recent events in the United States, investors may be adjusting their portfolios to reduce their exposure to the dollar. He said, "If we want the euro to play a stronger role on the international stage, a certain degree of appreciation may be inevitable."