Euro Hits a New Low Against US Dollar

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By Jacob Maslow

Photo of the american and euro banknotesAlthough many experts at Wall Street predicted the Euro to fall by significant margins, the final statistics have still surprised many. As Euro hits a new 12-year low, many were left shaken by the sudden fall of the currency. If predictions are to be believed, the Euro could soon be up to something which has only been seen a few times in its 16-year of existence, trading on a 1-to-1 ratio with the Dollar. The euro started to slide against the US currency in July as traders reacted to the divergence in policies between the Fed and the ECB.


Because of the variances between economic performance in the US and Europe, Euro has been facing a constant downfall since May, last year. The value for the European currency has fallen by as much as 22.4%. Where Euro’s recovery from the the global economic crisis has been a big deal, the dollar has been going strong all the time. Experts believe that all the divergence between the two economies is hurting Euro really bad.


Apart from the symbolic downfall of the currency, comparing it with Dollar does make it much more significant. Tourists from the United States will now find it much cheaper to visit European countries and other trades will be affected as well. Countries included in the Euro zone have considered all major factors responsible and the economic divergence seems to have hit them the hardest. Meanwhile, the dollar hit a new 11 year high against many currencies across the globe too.

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