The exchange rate is more or less the result of the monetary policies - ECB's Weidmann

Bundesbank President Jens Weidmann said that accusations that the German government is using a low euro exchange rate to exploit the U.S. are baseless in an emailed response to questions on Monday.

Key quotes (via Bloomberg)

• The exchange rate is more or less the result of the monetary policies and the different cyclical positions on both sides of the Atlantic
• There is a kernel of truth in the argument that the U.S. dollar is strong, and this is also an expression of increased confidence in the near-term economic outlook
• The ECB is required to gear its stance toward the 19-nation bloc as a whole, and that the U.S. has itself previously gained from a weak currency
• In the short run, competitive devaluations may be beneficial for first movers; in the long run, however, they hurt everyone involved. That’s why the G-20 agreed to abstain from currency manipulations

Weidmann and German Finance Minister Wolfgang Schaeuble are set to welcome Group of 20 finance chiefs in Baden-Baden from March 17.