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Draghi to Trump: ECB doesn't target euro exchange rate

William L. Watts

The European Central Bank's policy actions are aimed at achieving its inflation target and not at the euro's exchange rate, ECB President Mario Draghi said Tuesday, hours after U.S. President Donald Trump accused the institution of working to unfairly weaken the shared currency. "We don't target the exchange rate," Draghi said in a panel discussion at an ECB-sponsored forum in Portugal, hours after he delivered a speech that indicated the central bank could move to provide additional monetary stimulus as early as next month. Those remarks prompted a tweet from Trump, who said a weaker euro would make it "unfairly easy for them to compete against the U.S.A." Later, Trump again tweeted that Germany's DAX stock index was "way up due to stimulus remarks from Mario Draghi. Very unfair to the United States." Draghi, in the panel discussion, said the ECB is committed to meeting its inflation mandate and will use all the tools it has available. Inflation has remained stubbornly below the bank's annual target of near but just below 2%. The euro was down 0.3% versus the dollar at $1.1188, while the ICE U.S. Dollar Index , a gauge of the U.S. currency against a basket of six major rivals, was up 0.1% at 97.70. Global equities received an added boost Tuesday after Trump tweeted plans for an "extended meeting" with Chinese leader Xi Jinping at the Group of 20 summit at the end of the month. Germany's DAX index was up 2.1%, while the pan-European Stoxx 600 was up 1.7%. The S&P 500 was 1.1% higher, while the Dow Jones Industrial Average advanced more than 330 points, or 1.3%.