Europe has received no indication of a US plan to tackle dollar weakness and is in wait-and-see mode until there is a clear direction on the exchange rate policy from Washington, Ireland?s finance minister says.

In an exclusive interview with Reuters, Brian Cowen said there was no set timeframe to address an unusually severe situation in foreign exchange markets and that it was up to all global players to pitch in and ensure the dollar levels out.

?We?re in a wait-and-see mode to see what is the policy response in the United States,? the Finance Minister of euro zone insider Ireland said. ?We don?t have any indications as yet (of such a response).?

Cowen spoke to Reuters ahead of a surprise announcement from the White House that President George W. Bush had asked US Treasury Secretary John Snow to stay in his post for the time being and that Snow had agreed. Snow had been widely expected to quit in coming months and Cowen?s comments assumed Europe would be dealing with a new Treasury chief.

Speculation about Snow?s departure had led to questions about US policy on the dollar. Financial markets have come to believe that the US is happy to see the dollar decline to help redress Washington?s huge foreign trade deficit.

The euro has gained around 4 percent against the dollar since the start of November, setting a string of record highs and raising competitiveness fears for euro zone manufacturers.

Cowen made it clear he saw the exchange rate problem as a dollar ? not a euro ? issue, adding: ?We?d like to see drift in the dollar. It?s not a question of the euro being strong. It?s the dollar that has weakened.?

Monitor exchange rates

Speaking before the White House announcement on Snow?s future, Cowen had said Snow had clearly indicated that markets should set rates. ?To what extent that will remain the policy in the short to medium term remains to be seen,? he said. ?The policy response and the policy mix that will emanate from the new (US) administration will clearly have a very influential effect on how the markets respond,? he said.

Cowen would not be drawn into speculating on prospects for central bank intervention or interest rate changes to address the imbalances and said there was no set timetable for action.

If Group of Seven (G7) deputy ministers were to meet this week, as rumoured in markets, this would provide a chance to gauge what relief, if any, Europe can expect from Washington.

?I presume this issue will continue to be discussed amongst the G7. It?s an opportunity obviously for discussion and to try and see and glean what, if any, responses will be emanating from the United States,? Cowen said.

He spoke two days after the European Central Bank and European finance ministers voiced unhappiness at the euro?s ascent and said they would closely monitor exchange rates.

?Ministers are very anxious to ensure the potential growth is realised,? he said. ?There are some downside risks out there in exchange rate issues.? ?Volatile, sharp moves are not welcome.?

Cowen said there was no plan for European-Japanese action to affect exchange rates and European ministers had not been told of any central bank communication on the problem. ?There?s no sort of set plan going on between Europe and Japan on this question,? he said. ?I?m sure that if this trend continues contacts will be more frequent.?

Such imbalances arise from time to time, Cowen said, while agreeing that current market conditions were unusually severe.

?Clearly we all have a role to play in trying to assist this thing evening out and levelling off,? he said. ?We share the concern. We?d like to see things quietening down a bit.?

Lyndsay GRIFFITHS Jodie GINSBERG