Since the Euro was launched on January 1, 1999 as a common currency for 19 of the 28 member states of the European Union it has been seeing one upheaval after another.
The world’s second largest reserve currency, the Euro has been trading higher than the U.S. dollar for long, hitting a peak of 1.60+ USD at one stage. It has nonetheless been taking a hit of late and, as I write this, it is trading at around 1.14 USD with bears in control.
Euro Zone Debt: The Euro Zone comprises countries that often run into economic trouble – Greece, Spain and Italy, for instance, keeping the currency constantly under pressure.
It faced a major threat last week when the Swiss franc’s peg against the Euro was removed. It was a move that sent the Euro crashing.
Today, the ECB announced a much-anticipated Quantitative Easing programme with a monthly 60-billion-Euro bond buying package. The forex market reacted with negativity, pummelling the currency down.
This has led to further turmoil in the forex market (though the stock market viewed it as a positive signal), making one wonder if the creation of the Euro was a mistake.
G Joslin Vethakumar