E The Continuously Revaluating US Dollar

The longterm revaluation of the US dollar against the euro brings possible perspective of cheaper European goods on the American domestic markets.

On Friday, February 27, 2015, on the stock exchange in Frankfurt am Main the closing rate was 1 euro for 1.1190 US dollar, whereas the highest daily exchange rate jumped to the value of 1.1245 and the lowest daily exchange rate value declined to 1.1176. That means the exchange rate difference was minus 0.04 percent compared  to last day´s trading value of  1.1195 dollar for 1 euro. Actually, the exchange rate value on Monday, March 2 was 0.42 percent higher than the day before in the amount of 1.1229 USD for 1 euro.   

The common European currency quoted 1 month ago showed the closing value of 1.1372 USD for 1 euro, whereas the exchange rate loss of euro against the greenback in comparison to the exchange rate value of 1.2461 valid 3 months ago reached the value of minus 10.20%.

The devaluation of the euro against the US dollar in the period of the last 6 months reached the value of minus 15.19% with the closing exchange rate value of 1.3194 USD for 1 euro. Within the last year we've seen a closing exchange rate value of 1.3710 USD for 1 euro, which means the devaluation of euro against the greenback during the last year has been as high as minus 18.38%.

The closing exchange rate values on Friday, February 27 and on Thursday, February 26 with the values of 1.1190 USD and 1.1195 to the euro, respectively, remained relatively stable,  but comparing the Friday with the closing trading value of 1.1364 on Wednesday, February 25 shows further revaluation of the dollar.  

The above mentioned values show the continuous revaluation of the US dollar against the common European currency, which does not exclude the development towards euro-dollar parity. This development is good for European exporting companies, which will be probably more competitive on the US markets, but on the other hand is less favorable for the travellers from the euro-zone into the USA.

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Lyndon Hudson 4 years ago Member's comment

I bought a house in Europe (cash) when the Euro was 1.33; just as about as expensive as it could get. I'm not too concerned as 1. it's paid for, et 2. I hope to keep for the rest of my life, however, it does kind of suck seeing the dollar value of my house go down.

Richwood 4 years ago Member's comment

The "commom European currency" is like a bunch of your neighbors (and sucker you) agreeing to support each other even though your approach to economics are completely different. Germany enforces its tax laws, Greece lets the wealthy 25% not pay and then wants the honest Germans to bail them out. Imagine if you had to pay for your neighbors new car because he couldn't. So your family cannot eat dinner...Tell them to sell the car. The Euro is a stupid idea, was before, is now and will forever be. Unless Europe agrees to a one government, one economy, one constitution the euro is toast and the world knows it. No wonder the $ is strong...what other global currency is there?

Andrey Rodrigues 4 years ago Member's comment

Agreed. It is not working and now they are kinda stuck with something extremely expensive to be undone! The future doesn't look very bright...