Trichet: No decision on extending 12 month repos into 2010

But he says the market expects them to be phased out and he is comfortable with that expectation.

The phase-out of extraordinary measures will be gradual, he says.

Trichet said the ECB always takes the euro into consideration when setting rates. Excess volatility is adverse to the Euro area and the global economies and that he appreciates the US strong dollar policy.

Traders report the BIS sold the rally in EUR/USD in the 1.49-teens. EUR/USD now trades at 1.4889.