Euro bearing adjustment brunt alone: EU's Almunia

BRUSSELS (Reuters) - The strength of the euro against the dollar and major currencies in Asia does not reflect what is going on in the world economy, European Economic and Monetary Affairs Commissioner Joaquin Almunia said.

"Ultimately, the marked appreciation of the euro against the dollar, the Japanese yen and the Chinese yuan does not fully reflect macroeconomic realities and one currency should not be bearing the brunt of global adjustment alone," he said.

In a speech to a conference on the Asian economy on Monday, Almunia also said the world economy was hanging in a "precarious balance" and he suggested that a lack of confidence in the U.S. dollar would trigger further problems.

Although the United States, China, Japan, the euro zone and oil-producing nations agreed nearly a year ago to tackle risks posed by global imbalances, progress so far has been slow, Almunia said.

"This despite the fact that the risks of a disorderly unwinding have increased since last August. Action is lacking at a time when it is most urgently needed," he said.

"In today's climate of volatile financial markets and slowing global growth, all partners must make a concerted effort. We should not wait until financial markets force global adjustment," Almunia continued.

(Writing by William Schomberg; Editing by Dale Hudson)