Euro's strength criticized by leaders

BRUSSELS, March 7 (UPI) -- European trade groups and business leaders are challenging financial institutions to react firmly to the appreciation of the euro.

"We believe that silence on the euro's strength confronted with the weakness of other currencies is something that is not acceptable for business," BusinessEurope President Ernest-Antoine Seilliere said Thursday.

"We need this tackled at a higher political level," Seilliere said, arguing that the eurogroup, which includes financial ministers from the 15 eurozone countries should more say when it comes to adjusting exchange rates.

The European Trade Union Confederation, representing 82 trade unions, has also spoken out about the situation, the EU Observer reported Friday.

"The euro's continuing appreciation is becoming alarming," the group said, urging the European Central Bank in Frankfurt, Germany, to consider lowering interest rates to bring prices down.

On Thursday the bank announced without explanation it would hold key interest rates at 4 percent.

As the euro gains strength, it raises the price of the region's exports.The strength of the euro against the dollar reached $1.5346 Friday.