close

The euro is speeding ahead of the US dollar in value race

The euro is speeding ahead of the US dollar in value race

On Tuesday morning the euro shot up to its former 2015 value of more than 1,20 dollars. This is the third day in a row that the euro has been gaining in value at a fast rate.

Increase in value

Given the current rate of increase, the euro is expected to fly higher still. This is mainly due to the European Central Bank (ECB), that is responsible for the interest rate, and the expectation that they will start to phase out the money printing programme, which they put in place to repair the damages incurred during the late 2000s crisis. 

It is possible that the ECB will announce changes to their monetary policy next week during the ECB Governing Council meeting. 

Resistance limit broken

According to John Hardy of Saxo Bank, the barrier directly above the 1,2 dollar value was broken, causing the euro to shoot up. 

Implications

Whilst this means that you can get more bang for your buck, as it were, many central bankers are worried that the euro is becoming too strong, which may have implications for the Eurozone.

Euro vs other currencies

The euro has been climbing steadily, but how do other currencies measure up to it? The table below compares exchange rates from August 29, 2016 to August 29, 2017, and, as you can see, the euro appears to have increased in all instances since last year. 

Currency name 2016 Units per EUR 2017 Units per EUR
US Dollar 1.1179623675 1.2044397007
British Pound 0.8542186265 0.9298773813
Indian Rupee 75.0713167293 77.0976110776
Australian Dollar 1.4761762134 1.5097522680
Canadian Dollar 1.4558074146 1.5023191824
Swiss Franc 1.0936043367 1.1384847228
Japanese Yen 114.1850544671 130.7570228048
Hong Kong Dollar 8.6705481319 9.4241496725
Mina

Author

Mina Solanki

British girl living in the Netherlands, enjoying the sun *coughs*, I mean rain, and filling her time with adventures.

Read more

JOIN THE CONVERSATION (0)

COMMENTS

Leave a comment