On the 11th (local time), Christine Lagarde, President of the European Central Bank (ECB), stated that it could intervene if U.S. President Donald Trump's tariff policy poses a threat to the stability of the European financial markets. During a press conference after a meeting of EU finance ministers held in Warsaw, Poland, Lagarde said, "We are monitoring the markets and are ready to use our market stability measures."
He noted that the market infrastructure, including bonds within the eurozone, is functioning normally and added that he is watching the impact of exchange rates on inflation and economic models. Due to concerns over Trump's tariff policy and a recession in the United States, selling of dollar-denominated assets has continued, leading to a rise in the value of the euro. On that day, the euro rose more than 2%, surpassing $1.14.
Lagarde stated that she would not target a specific exchange rate level, but she expressed concern that the strength of the euro could negatively impact economic growth by raising export prices, leading to market expectations that the ECB will lower interest rates more aggressively.