ECB says will monitor impact of euro strength

The European Central Bank will monitor the economic impact of a strengthening euro, ECB President Mario Draghi said today, feeding expectations the climbing currency could open the door to an interest rate cut.

After the ECB left its main interest rate at 0.75 percent earlier, Draghi said the exchange rate was near to its long-term average but went further than many analysts had expected.

"The appreciation is, in a sense, a sign of return of confidence in the euro," Draghi told a news conference.

"The exchange rate is not a policy target, but it is important for growth and price stability and we certainly want to see whether the appreciation is sustained and will alter our risk assessment as far as price stability is concerned."