ECB's Praet says euro fx rate within normal range

Reuters

MUNICH, Oct 15 (Reuters) - The euro is trading within arelatively normal band in foreign exchange markets at themoment, European Central Bank Executive Board member Peter Praetsaid on Tuesday, indicating it is not a great worry for thecentral bank.

Praet, who has the powerful economics portfolio within hisremit, also said that U.S. budget problems were not affectingthe central bank's monetary policy yet.

"We are in a relative normal range in euro foreign exchangerate," Praet told reporters after a speech at the BavarianEconomic Club.

"I don't see for the time being any impact from the U.S. onour monetary policy ... it's marginal and we hope it will besettled."

Praet added that he was confident that a solution would befound and that reason would prevail. But he also repeated ECBPresident Mario Draghi's words, saying that if no solution isfound, it would have catastrophic consequences.

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