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Euro against the Dollar

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  • 18-08-2002 6:22pm
    #1
    Ruu_Old
    Closed Accounts Posts: 36,634 ✭✭✭✭


    what actually affects the change in currency, im not sure about it, what part of the economy shifts the exchange rate...like the US Dollar has been worth around 0.98 cents for the last week. any sign of it bettering that? thanks :)


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    #2
    mike65
    Closed Accounts Posts: 88,978 ✭✭✭✭mike65


    The value of a currency is dictated by several factors, a few of
    which are voodoo ie guesswork about the future. But the main influence on the dollars value is the stock market, the dollar
    remained high against the Euro mainly becasue european money was pouring into the Wall Street Markets in the hope of
    corporate earnings being strong, this offset the worries over the US current account deficit, however when it became clear that the
    slow-down in the US econony was going to be longer-lasting than hoped combined with fraudulent accounting
    practices in US corporations that same foreign money was withdrawn (by selling stocks etc). The value of the dollar therefore fell, rather than the euro gaining strength.

    As for the current value it looks like the exchange rate with
    stay in the US 97-102 cent range for some time yet.

    Mike.


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