Euro Slides Yet Again to a Record Low Point

Daily Mail (London), September 7, 2000 | Go to article overview
Save to active project

Euro Slides Yet Again to a Record Low Point


THE ailing euro yesterday plunged to its lowest value yet against the dollar.

The value of the embattled single currency, which tumbled to 86.9 cents, has now fallen by 25 per cent since its launch 20 months ago when it was worth $1.17.

It has fallen by a similar amount against the pound and closed yesterday at 60.4p compared with 70.4p at the launch.

Analysts said that a combination of factors was undermining the euro: Slower growth in the 11-nation euro zone compared to the United States, social unrest in France, bets by currency traders earlier this year that the euro would recover and signs that German politicians might be happy for it to stay weak to boost exports.

'It's another case of euro- optimism being dashed by events,' said Tony Norfield, a currency economist at ABN Amro in London.

The latest slide came despite signs that the German economy, Europe's largest, is growing strongly with the number out of work at a five-year low.

However, stronger than expected American productivity figures once again underlined the difference between the powerful U.S. economy and the slower recovery in the eurozone.

Market watchers are warning that the euro could fall even further. 'For the next couple of months, upward movement is unlikely and 85 cents seems quite likely,' said Michael Lewis, a senior economist with Deutsche Bank.

The euro's plunge was accelerated when Germany's Chancellor Schroeder said in a speech on Tuesday that a weak euro was good for exports.

'The current eurodollar rate is more of a reason to be happy than concerned,' he said.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Euro Slides Yet Again to a Record Low Point
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?