Alone with news that EU prevention of single currency strength unlikely

The euro rose against the dollar on May 20 after an exclusive Reuters interview with Portugal`s finance minister Fernando Teixeira dos Santos suggesting European Union policymakers were unlikely to try to prevent strength in the single currency. Trading at $1.3650 just before the interview was published, the euro climbed to $1.3680 within five minutes and continued rising through the European day, to $1.3800. Teixeira dos Santos said euro strength, and the possibility that it could hurt the euro zone economy, had not been a concern in meetings of European finance ministers in recent months, adding that the euro’s moves had been “natural”. He also delivered a positive assessment of the Portuguese economy just a few days after the government cut economic forecasts for this year. Teixeira dos Santos said the economy was likely to resume growth in the second half of 2009, and ruled out a need for Portugal to increase its debt financing.