European Central Bank Governing Council member Alexander Demarco stated in an interview with Econostream that the ECB need not be overly concerned if the euro appreciates further beyond $1.20. In the interview published on Thursday, Demarco remarked, "Previous research indicates that the equilibrium exchange rate may be around $1.20 to $1.25, and the current exchange rate still has some distance to that level. Even if it reaches that level, it would not be the end of the world." Demarco also noted that, in light of recent events in the United States, investors might be adjusting their portfolios to reduce their dollar allocations. He stated, "If the goal is for the euro to play a stronger role internationally, a certain degree of appreciation could be an inevitable outcome." Most ECB officials have downplayed the potential inflationary pressure from the euro's recent strength. Vice President Luis de Guindos said last July that an exchange rate of $1.20 was "perfectly acceptable," but a higher rate "would be much more complicated."