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January 16, 2008

Euro clims up the ladder again! – close to previous high at 1.4966

Scenery remains the same, as US dollars keep on falling against EUR, which has nearly reached its highest ever price and now stands at 1.4966.

2 Responses to “Euro clims up the ladder again! – close to previous high at 1.4966”

  1. Traveler Says:

    The instability of the US dollar makes it so difficult to invest in foreign currency these days.
    Frustrating. Where do you see the Euro in 6 months?

    Thanks

  2. The What Girl Says:

    The instability of the US dollar might even stress out even more the undergoing relationships between the currencies.

    As far as Euro is concerned, it is indeed about 25% above its Purchasing Power Parity level versus the dollar.

    This is measure of currency equilibrium based on trades. Simply put, if a country experiences higher levels of inflation -pretty much what’s happening in the UK at the moment- its currency depreciates, and so it worths less, against a country with a similar production base.

    What trigers that, is the reduced demand for this country’s exports, and thus the local currency.

    Technically, Euro still looks to be doing well, as central banks continue to add up to their Euro reserves.

    I hope that clears up things a bit for you. 😉

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