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Euro vs. US dollar.

  1. Mar 7, 2008 #1

    vanesch

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    In Europe, people seem to be extremely worried about the high level of the Euro vs. the dollar (we reached $1.54 for 1 Euro yesterday). This kills European export, but on the other hand it saves us from very high oil prices.

    Now, I'm wondering, is it the Euro that is artificially high, or is it the dollar that is low ? Because if at the same time the Euro is high, and the oil price is high (expressed in dollars), then it may simply mean that it is the dollar that is low.
     
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  3. Mar 7, 2008 #2

    Astronuc

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    It's probably both. The Euro is high and the dollar is low - based on a subjective valuation of the currency.

    Technically, the US economy is in trouble due to the high levels of credit at a time when actual wealth is declining.
     
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