VENICE, Oct 8 (Reuters) - Authorities on both sides of the Atlantic agree exchange rate volatility poses a risk to economic and financial stability, European Central Bank President Jean-Claude Trichet said on Thursday.

'We consider that excess volatility and disorderly movements ... have adverse implications for economic and financial stability,' Trichet said at a news conference after the ECB kept rates on hold at an all-time low of 1.0 percent.

'We agree on that on both sides of the Atlantic,' he said. 'We will continue to monitor exchange markets closely and cooperate as appropriate.'

The euro has gained roughly 3 percent against the dollar since the ECB's September rate meeting and about 16 percent in the last seven months. It has also climbed more than 6 percent against the pound since September.

Trichet welcomed a recent statement by U.S. Treasury Secretary Timothy Geithner that a strong dollar was very important to the United States.

'The statement of the U.S. authorities ... is extremely important in the present circumstances,' Trichet said.

A meeting of G7 finance ministers and central bankers last weekend ended with a communique urging more flexibility in China's yuan and warning about currency volatility. Europeans said the euro must not bear the brunt of rebalancing.

In a Reuters Television interview on Monday, Trichet said the need to rebalance the global economy does not at all mean the dollar should depreciate against the euro.

(Reporting by Nigel Tutt, editing by Mike Peacock) Keywords: ECB/EURO

(email: mike.peacock@thomsonreuters.com; Reuters Messaging: mike.peacock.reuters.com@reuters.net: +44 207 542 3784)

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