The rise of the euro on foreign exchange markets weakened the competitiveness of eurozone producers by about two percent in the fourth quarter of 2003, the European Commission said on Thursday.
During the fourth quarter, the euro rose against all major currencies with an average gain of 10 percent against the dollar, three percent against the yen, one percent against the pound and 1/2 percent against the Swiss franc.
"The appreciation of the euro exchange rate lead to a weakening of the cost competitiveness of euro area producers...of about two percent in the fourth quarter," the EU executive said in a statement.
The Commission said producers' competitiveness had fallen by about 10 percent compared to a year earlier.
The current competitiveness position was, however, only two percent worse than its average between 1980 and 2002.
Measured against the currencies of 12 industrialised countries, the nominal effective exchange rate of the euro rose by about four percent in the fourth quarter, leaving it nine percent above its 1999 inception level.
The decline in the value of the dollar has boosted the competitiveness of US producers.
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