Trichet warns markets on carry trades risk

European Central Bank president Jean-Claude Trichet warned markets this weekend at the G7 finance ministers and central bank governors meeting that one-way bets in currency markets posed risks.

"We want the markets to be aware of the risks in one-way bets, particularly on the foreign exchange markets," Trichet told a news conference after the weekend meeting of G7 finance ministers and central bank governors.

"One-way bets in the present circumstances would not be, it seems to us, appropriate,"