ECB’s Villeroy: Euro Strength Could Weigh on Inflation

28 January 2026

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Wednesday that the ECB was paying close attention to the euro’s appreciation against the US dollar and its potential impact on inflation.

Writing in a LinkedIn post, Villeroy, who heads the Banque de France, said that the dollar was “falling significantly against most currencies, including the euro,” which he said reflected reduced confidence in the United States amid the unpredictability of its economic policy.

“The Eurosystem does not have an exchange rate target, but we are closely monitoring this appreciation of the euro and its possible implications for lower inflation,” he said. “This is one of the factors that will guide our monetary policy stance and interest rate decisions in the months ahead.”

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