The Euro: A “False Friend?”

Far be it from me to claim any insight into the gyrations of the currency markets, but I couldn’t help noticing an article that appeared on the website of Business Week a while back warning readers against putting too much faith in the Euro, which had just recovered a couple of cents in value against the dollar. Although carefully hedged about with if, buts, and maybes as such financial articles always are, it suggested that the rally would be short-lived, and the European currency would soon test new lows. At the time, it stood at 1.2229. Bad call, Mr. Expert! As I write this, the Euro is bid at 1.2522. Meanwhile, both the Canadian dollar and the Swiss franc are worth more than the U.S. dollar, at 1.0586 and 1.0590, respectively. Not to worry, though, gold and silver both fell off a cliff today, so our dollar still managed to appreciate in value against “hard currency.” Go figure. I’ll be in Canada if you need me.

Author: Helian

I am Doug Drake, and I live in Maryland, not far from Washington, DC. I am a graduate of West Point, and I hold a Ph.D. in nuclear engineering from the University of Wisconsin. My blog reflects my enduring fascination with human nature and human morality.

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