UPDATE 1-Eurogroup chair worried by fx, sees slower growth

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By Michele Sinner

LUXEMBOURG, March 28 (Reuters) - The euro's exchange rate volatility is excessive and unwelcome, the chairman of euro zone finance ministers, Jean-Claude Juncker, said on Friday.

The euro <EUR=> rose 12 percent against the U.S. dollar in 2007 and another 8 percent this year alone, hitting record highs just above $1.59 on March 17. On Friday, it moved one U.S. cent up and one cent down again.

"We don't like the excessive volatility of the exchange rate, which is not welcome and we don't like the recent sharp moves in the exchange rate," Juncker told reporters.

"When the American president and the American central bank say that a strong dollar is in the interest of the American and the global economy, they actually mean it," he said.

The dollar is falling against the euro because the U.S. economy could be on the brink of recession and markets expect the Federal Reserve to cut interest rates further. In the euro zone, the European Central Bank is seen keeping rates stable.

Asked whether the dollar was still overvalued, Juncker said:

"We don't think the dollar is still overvalued, but we are of the opinion that Europe should not bear the integral weight of the adjustment of global imbalances."