No cause yet for European Central Bank alarm over euro strength

By Olga Cotaga LONDON (Reuters) - How concerned should policymakers be by the euro's rapid rise to 28-month highs? Those tracking the currency's effects on growth, inflation and exports reckon it's still some way off levels that would start to dent economic recovery. Since mid-May, the currency has risen nearly 10%versus the dollar and futures markets show it has drawn a record number of bullish bets.

On a trade-weighted basis, the gauge watched by the European Central Bank, the euro is up nearly 5%. That pace.

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