Alexa
  • Directory of Taiwan

Declining U.S. dollar causes concern in Europe

Declining U.S. dollar causes concern in Europe

The U.S. dollar kept spiraling down Friday, hitting another low against the euro and dropping to a three-year record against the yen, as worries about the U.S. economy depress the currency and raise thorny issues in Europe about how to cope with the growing gap.
The euro flew past its previous high to hit US$1.5238, before subsiding to US$1.5194 late in New York. The euro topped US$1.50 this week for the first time since being introduced in 1999 at US$1.17, then surged above US$1.51 after markets took comments from U.S. Federal Reserve Chairman Ben Bernanke as a sign that yet more U.S. rate cuts are on the way.
The 15-nation currency's looming ascent has some of the United States' large trading partners in Europe considering their options, and drawing two very different reactions: alarm from the French, equanimity from the Germans.
Germany's manufacturing giants are keeping an eye on the record-high euro, but are also planning for the future, devising new strategies to mitigate the effect of the strong currency on their bottom line.
In France politicians called for the European Central Bank to intervene to slow the euro's surge. French Budget Minister Eric Woerth this week called the "very high" euro "a handicap for our exports."


Updated : 2021-06-18 02:20 GMT+08:00