In Brief: German Banker Sees No Need for Rate Hike

There is no need for the German central bank to raise interest rates to protect the mark, one of Germany's leading bankers said Wednesday.

Rolf Breuer, management board chairman of Deutsche Bank AG, said at a news conference on his bank's first-half earnings that the situation on the foreign exchange markets "isn't out of control, but reasonable."

He said that "at the present level, there is no need" for the central bank to raise interest rates. He didn't say whether such a move would be necessary if the mark continues to fall.

Early Wednesday, the dollar hit 1.8325 marks, its highest level in six years, while the British pound hit an eight-year high of 3.0880 marks.

Mr. Breuer was more cautious regarding the level of the German stock market, which has risen more than 50% since the beginning of the year. "The air is thin," he said. "At these levels, people have to be aware that it isn't a one-way street."