Euro zone countries need closer cooperation on exchange rate policy, French Finance Minister Pierre Moscovici said on Monday, adding that the issue would be discussed at the meeting of euro zone finance ministers later today.
French President Francois Hollande urged the euro zone last Tuesday to set a mid-term target for the euro exchange rate in reaction to the currency's appreciation in recent months which makes euro zone exports less competitive.
"We will have a debate about exchange rates. The euro has appreciated strongly in recent months ...for positive reasons, because confidence is coming back in the euro zone," Moscovici told reporters on entering the ministers' meeting.
"We should have - I have insisted that this debate takes place - a coordinated approach between us that will allow for us to argue for exchange rate stability, especially within the G20," he said.
"I think that we must, at the international level, argue for a coordinated approach that will allow us to have a stable exchange rate and that this exchange rate reflects the fundamentals of our economies so that expectations of economic agents are anchored ... Exchange rates should not be subject to moods or speculation," he said.
(Reporting By Robin Emmott, writing by Jan Strupczewski; editing by John O'Donnell)