European Central Bank headquarters. Photo: public domain

The euro fell to its lowest point so far this month, after minutes from the European Central Bank meeting in July showed concern about the appreciation of the euro, and continued caution as the bank’s inflation target remains elusive. Policy makers’ next vote will come on September 7.

From the July minutes:

Regarding exchange rates, while it was remarked that the appreciation of the euro to date could be seen in part as reflecting changes in relative fundamentals in the euro area vis-à-vis the rest of the world, concerns were expressed about the risk of the exchange rate overshooting in the future.

[…] the available evidence continued to indicate that convincing progress on a durable and self-sustaining convergence of inflation to the Governing Council’s medium-term inflation aim had still to be secured.