(Almost) any thank-you gift... just $5/month or more! GIVE NOW

Will the Euro continue to fall?

Alisa Roth Aug 11, 2008
HTML EMBED:
COPY

Will the Euro continue to fall?

Alisa Roth Aug 11, 2008
HTML EMBED:
COPY

TEXT OF STORY

Scott Jagow: You know when you find a dollar bill in your laundry and it’s all crinkled up and tattered? That’s been the state of our currency the last couple of years. Anyone’s been to Europe knows that first-hand. It’s affected the price of oil. It’s behind inflation. But the dollar’s looking a little crisper of late. Last week, the euro fell more than 3 percent against the dollar. Alisa Roth reports.


Alisa Roth: The currency market is settling down this morning after a crazy week last week. A euro is worth about $1.50 now, but it did drop below that briefly today. And currency watchers are wondering whether the European currency will continue its fall this week.

Dave Solin is with Foreign Exchange Analytics. He says news that the effects of the mortgage crisis spreading to Europe have been good for the dollar.

Dave Solin: The view is that the U.S. was kind of the initial one into these set of problems. That the rest of the globe will be economically impacted and the U.S. will be first one in, first one out.

He says the falling oil prices have also helped, since a lot of people associated high oil prices with a weak dollar.

But it may be too soon to celebrate the return of the mighty greenback. Solin says he thinks a lot of the gain is just correction for the long fall over the last couple of years.

In New York, I’m Alisa Roth for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.

It’s a great day to invest in Marketplace at any level!

Donate $5/month or more today to get almost ANY thank-you gift.