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.
About The Euro
The Euro is the currency of 19 of the countries in the European Union, and one of the world’s most important international currencies. It has been in circulation since 1999, when it replaced currency previously used separately by each state.
The Euro is managed by the European Central Bank, which sets currency policies and strives to keep inflation in check while ensuring economic stability. The Euro is now accepted as currency in a large number of countries around Europe, allowing for easier travel and trading between them.
It is also an increasingly popular currency to hold outside its official markets, as the Euro offers savvy investors the opportunity to hedge against currency fluctuation risks.
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2 Comments
Traveler
January 17, 2008The 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
The What Girl
January 22, 2008The 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. ;)