French President Francois Hollande. Photo: Reuters

French President Francois Hollande urged the euro zone on Tuesday to set a target for its currency's exchange rate to protect the common currency against fluctuation. Hollande made the call in the context of more French government concerns about euro strength that can affect exports and the region’s economic growth. In his first speech in front of the European Parliament as French President, Hollande stressed that growing confidence that the 17-nation euro zone is past the worst of its debt crisis has helped strengthen the euro to around $1.35 in recent weeks. He said the EU is allowing the euro to be vulnerable to unexpected changes and an exchange rate policy is needed in order to avoid dependence on an inappropriate exchange rate.