June 8th, 2010
05:26 AM GMT
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(CNN) - Seems like every time you switch on business news in recent days, you hear about the euro hitting “fresh four-year lows.”

This year hasn’t been kind to the euro. A scant six months ago, the euro was trading $1.50 to the U.S. dollar. But that was before the Greek debt crisis erupted into the EU debt crisis, and the 16-nation monetary union is now facing a crisis that has some critics questioning its very existence.

The latest round of “fresh four-year lows” happened Monday, with the currency trading as low as $1.1875. What other benchmarks await the euro if it continues its slide? Adrian Bowden, a London-based business editor for CNN International, put together this handy reference:

If the euro falls below $1.1856  - Lowest since February 2006

Below $1.1823 – Lowest since January 2006

Below $1.1799 – Lowest since December 2005

Below $1.1657 – Lowest since November 2003

Below $1.1374 – Lowest since September 2003

Below $1.0762 – Lowest since April 2003

Below $1.0335 – Lowest since 2002

So the question the business world wonders: How low will the euro go?

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soundoff (109 Responses)
  1. Igor Marjanovic

    When the EURO gets low it sucks to IMPORT but we love to EXPORT :)
    Euro will hold! However some serious reforms are needed throughout the eurozone.

    June 8, 2010 at 6:01 am |
  2. Bill

    I believe the Euro is in a free fall or correction. The true financial integrity of the European Unions are finally being scrutinized. Personally I'm waiting for it to hit even with the dollar so I can travel back to Italy. Maybe now more Americans will travel to Europe for vacation. Cheer up Europe the Americans are coming!

    June 8, 2010 at 6:04 am |
  3. The illness of Greece unfolded in the all world.

    The solution that is necessary is the creation of single institution and single currency in the European Union, USA in Mexico and in Canada initially.

    As a beginning of infrastructure of western institution with one central administration that will be installed initially in London where it will initially coordinate the first western of two continents financing system and continuity of one global finance system.

    That is gone be the final solution.


    June 8, 2010 at 6:24 am |
  4. Pat

    When it was introduced the euro was worth more or less the same as the dollar and it wasn't the end of the world. Can only help exports & tourism, but makes gasoline a lot more expensive, oil being paid for in dollars. I think the euro will survive & the EU will come out stronger from this crisis. Other countries have been through painful IMF bailouts & are doing fine now. Dropping the euro now would probably end up costing Europe more in the long run than propping it up to get through this bad phase. Long live the EU & the euro!!!!!!

    June 8, 2010 at 6:30 am |
  5. Strangewalk

    The value of any currency is determined by short term program trading on the Forex with little regard for fundamentals, and is manipulated by central banks, news outlets and major players who can guide market psychology. In other words it's a casino game in the house of greed and fear.

    June 8, 2010 at 6:36 am |
  6. Asad

    It seems as if EURO is established on a weak foundation, still could not hear any strategic decision to avoid this downfall, EU lack proper planners and analysts to deal with any crisis. For bringing one legislation they take so much time that it becomes fruitless. I am hearing bluecard same as green card in america since couple of years but still no remarkable progress. I think bluecard can solve their problem because angry greek workers can then easily cross border to earn greener rather then throwing stones within their own country.

    June 8, 2010 at 6:47 am |
  7. Charles Nesbit

    It´s only money, folks. Don´t worry about a thing. The Euro, the Yuan, Dollar, Ruble, Scheckel...whatever, all fiction. We´ll return to ´Salt´ one day soon. Meanwhile greed will find it´s own path to (self) destruction....

    June 8, 2010 at 6:53 am |
  8. Dimitris

    Eurozone needs political unification in order to succeed in its fiscal one. It is now time to put aside differences and draft a robust and comprehensive European Consitution that will provide the framework for a succesfull European platform of member countries. Greece was, is and will be one of the weaker economies in the Eurozone. Greeks have lived with and accepted corruption as a "matter of fact" due to the lack of a solid social framework fostered by many years of political unrest and a rather juvenille democracy (since 1974). The GDP is spearheaded by tourism and shipping, two industries that are the first to be affected in a global economic crisis. So please, when referring to any of the "PIGS" , do a little bit of research prior to forming an opinion.

    June 8, 2010 at 7:22 am |
  9. Chris

    I will speak about what I know to be true because I'm living it. The day after the creation of the Euro Italy's population lost nearly 50% of their purchasing power. Some of this was compensated for with lower transition costs within the EU but for the most part our quality of life dropped through the floor. How can countries with different political systems, different inflation rates and different future goals unite in a single currency? The dollar is the currency of an united federal state. It works. The Euro isn't working but I fear that this is the wrong moment to do away with it.

    June 8, 2010 at 7:24 am |
  10. majdi alatiwsh

    I think Euro will go below Dollar , it will be between 0.8-0.9 soon

    June 8, 2010 at 7:35 am |
  11. Uros Bohinc

    Yes it's great for export, but since Europe is importing more than exporting, it's not so great :)

    June 8, 2010 at 7:42 am |
  12. Deepwater805

    The Euro will go as low as the devaluation adjustment of the PIIGS takes it. Probably on parity with the dollar. In other words: when the true GNP of the Eurozone is re-calculated to take into account the actual value of the PIIGS, then the Euro will reflect that new value. It also depends on what the new prime lending rate is gonna be, for both the PIIGS, and the rest of the Eurozone.

    June 8, 2010 at 7:46 am |
  13. Reg

    When the Euro was introduced, our purchasing power significantly dropped, due to dishonest pricing practices. The initial confusion, and lack of a value grasp, allowed sellers to change currency signs while arbitrarily assigning numerical values for the amounts. However, salaries were pedantically converted by using the proper rates, while prices became fictitiously high. Naturally a crisis of sorts was going to happen. Hopefully this crisis will lead to corrective movement, and leave a more stable Euro afterwards. There is of course the option of abandonding the Euro and taking two steps back.

    June 8, 2010 at 7:48 am |
  14. Dhar.T.K

    At this juncture of crisis, European communities are needed to increase their export to U.S, Brazil and increase import from Asian countries like India and china. It is also needed to reduce the desparity among the europeans in GDP growth. Euro will gain its original purpose shortly with in 3-4 months. However, there is a good chance of more traveller from America to Europe and Asian countries.

    June 8, 2010 at 8:01 am |
  15. James Chater

    The euro's problems have to do with the widely varying attitudes to money found among the different countries of Europe. The Germans are the most afraid of inflation, for historical reasons, therefore are the most likely to be prudent. Other countries are happier to borrow and inflate. Can all these countries co-exist within a one-size-fits-all currency?
    I think it would be to everyone's benefit if the "Hard money" countries like Germany parted ways with the soft-money countries like Greece or Italy. Greece, Italy and Spain could have their own currencies, which would lose value compared to the "hard euro", thus making their exports and tourist industries more attractive to countries with a more expensive currency. Like in the old, days, before the euro. Everyone would win. Who's to say we're better off now than then, anyway?

    June 8, 2010 at 8:03 am |
  16. Kees

    Shows clearly how ridiculously weak the Dollar has been over the past 8 years. Since the Euro was 1 on 1 with the dollar 8 years ago. Hope the Americans will be able to keep the dollar strong from now on. This reevaluation of the Euro is critical in Boosting European exports and Tourism. Exactly the reason why China keeps it`s currency undervalued as well greatly boosting Chinese exports as we have seen over the years. The EU is a big export and tourism place. Though the US debt has now reached 90% of GDP an will reach 100% of GDP in 2012 even without their new Medicare costs included. It`s starting to look like a Greek tragedy coming to the US itself if it`s not careful. For the EU and the Eurozone this is a great moment to balance budgets. A great moment to develop new rules and laws that will strengthen it for generations to come. Clearly letting every Euro member nations have exclusive oversight over it`s national budgets is not credible. Though no one expected Greece to lie about its budgets it was naive of politicians to just trust any nation promises without firm laws being applied. But lets use it as a wake up call for stronger monetary policies and government oversight by the EU. With the New Lisbon Treaty it is now much easier to develop new rules and laws that will benefit the Euro and the EU in the future.

    June 8, 2010 at 8:03 am |
  17. Kees

    Shows clearly how ridiculously weak the Dollar has been over the past 8 years. Since the Euro was 1 on 1 with the dollar 8 years ago. Hope the Americans will be able to keep the dollar strong from now on. This reevaluation of the Euro is critical in Boosting European exports and Tourism. Exactly the reason why China keeps it`s currency undervalued as well greatly boosting Chinese exports as we have seen over the years. The EU is a big export and tourism place.

    June 8, 2010 at 8:07 am |
  18. satian thailand

    With the extremely negative sentiment toward it, EUR will be heading for par value with USD. I do not want to guess beyond that. One fact though, Europe will be cheaper and cheaper each day passing.

    June 8, 2010 at 8:29 am |
  19. Mark

    How stupid will this look in 2-3 years when the Euro is again 1.50 to the dollar?

    Thanks again CNN

    June 8, 2010 at 8:43 am |
  20. lim

    The key is that fiscal debt problems plagues both Europe and US.

    The Euro has been over-valued when looking at its debt level which actually dwarfs the US debt.

    Total EU gross debt exceeds US$25+ trillion whereas US debt hits $13+ trillion. Its not a pretty sight when considering that the EU is only slightly larger in GDP compared to the US. Viewed from that angle, it is surprising that the euro is currently worth more than the USD.

    If Europe defaults, that could affect 2/3 of total global debt levels. The ugliness of that default would crack all mirrors.

    June 8, 2010 at 8:52 am |
  21. Chris Booth

    I think the euro will soon go straight back up to where it was. Once the markets and analysts get past the initial knee-jerk reaction to these brave, necessary adjustments they will begin to realise that markets where the local politicians that been brave enough to take these steps have in fact made improvements and not the contrary. Then compare those markets to others who's politicians haven't yet been brave enough to fully 'out' their problems and all of sudden the supposed bad news ends up being good news.

    June 8, 2010 at 9:06 am |
  22. Dj Daley

    I think it is better to liquefy the euro and go back to the way things were before. I know that would be strongly supported by most working class people in most EU countries. Particularly the UK..... lets hope the conservatives can back up what labor has been pushing for the last 50 years.
    It is a failed currency with a failed system created by people whose only objective is to get rich regardless of consequences.
    This should teach our own capitalists in America a lesson. Perhaps it will slow them down a bit on launching the "Amero" for the USA, Canada and Mexico.

    June 8, 2010 at 9:16 am |
  23. sambina

    The Euro is not that low...the media is just making it worse by dramatising the economic situation....USA should know with what happened recently! There is nothing wrong with the Euro....the speculators are the pb and encouraging this atmosphere of uncertainty will only aggravate things so stop!

    June 8, 2010 at 9:23 am |
  24. arma

    Sometimes i really wish we would live in some dictatorship, in which irresponsible news-terrorism could be banned.
    This panic is a pure creation of news organisations( mainly non-euro) and rating agencies. our industrial bases is way stronger than the us one, and our debt doesnt even come close to the us or japanese.
    so cut the crap, and start reporting responsibly!!!

    June 8, 2010 at 9:57 am |
  25. Garrett

    Im excited. As an American living in France over the next few months I will do a lot more shopping than I did a few years ago when the Euro was around 1.65. Europe is a great place to travel but nobody wanted to because it was too expensive. Decline of the Euro means more tourism which will hopefully lead to more jobs in Europe.

    June 8, 2010 at 10:34 am |
  26. Loni(Republic of Kosovo)

    I love Europe Union ,hope euro get strong in coming days because most countries depend on it.

    June 8, 2010 at 10:52 am |
  27. Tim

    Lets see how low the euro will go when countries like Spain and Portugal reveal their actual debts and defice problems. I gues the euro will go as low as 0.90 to the dollar.

    June 8, 2010 at 11:17 am |
  28. Chris

    The falling of the Euro is not much of a question at this point. There are too many countries in Europe that are on their deathbed (economically speaking). Once Europe falls it is going to take most if not all the global economy with it. All the countries are in bad shape. In a few years (How many I won't guess) however America will default on its debt. It is only getting bigger, not smaller and has been for years now.

    We need a new system, and it is going to take most of us to stand up and say enough is enough. I don't know about everyone else but I am tired of paying companies to fix their mistakes. When you gamble there is a risk, there is no reason taxpayers should bailout gambling criminals. Everyone should take a look at The Venus Project. We could make a better world then this. Capitalism has served us well... but it is on its death bed... We need to stop human civilization from going with it.

    June 8, 2010 at 12:27 pm |
  29. postman

    As the value of the euro declines relative to the US dollar, US exports to Europe will decline but European goods will become cheaper in the US. In addition it will become more affordable for US citizens to travel to Europe. If you like BMWs and Greek olives this is a good thing!

    June 8, 2010 at 1:15 pm |
  30. Dr. Hope

    How smart Great Britian was not to choose to become part of the Euro, they learned their lesson from that George Soros in the early '90's when he almost bankrupt the British pound!

    The pound is still pounding!

    June 8, 2010 at 1:16 pm |
  31. MoneyMan

    The Euro has been artificially inflated for a long time now, the union is full of broke or nearly broke countrys and there combined debt is an obstacle that they can not overcome. The Euro will rest at its actual value in the coming months, im guessing between 0.78 and 0.88

    June 8, 2010 at 1:16 pm |
  32. PG

    Until bad governments and officials are legally held responsible for their actions and speculators are branded as criminals , the human race is going nowhere .
    The financial system is going to have to be regulated in some way , to stop these con men doing what they have been doing for quite a few years ,and not being stopped by anybody . These people have been looking at noise in the financial system , not true indicators , thank god they are not scientists. They are also technological illiterates as they do not understand the computer systems and programs they are using , and even more so who wrote them and if anyone actually verified them
    . Also don't try and compare the US to the UE only in GDP terms , look at population size, the US is becoming small by world standards .
    I am seriously starting to ask questions concerning the world educaion systems , what they are required to do , what standards they are suppose to set , and most imprtant what type of people we allow to be educators , listening to some of them , they are even lacking the basic knowledge in social education..

    June 8, 2010 at 1:26 pm |
  33. Chris

    As long as countries with no strong economic fundamentals are part of europian union (like Greece) we will see euro sliding further due to downward pull from these countries. It is a burden europian union has to carry in future. People are fogetting that there is always a risk when countries with different economic fundamentals are put in one union. Some countries are going to benefit out of it and some going to take a hit out of it. My personal opinion is that euro is over valued.

    June 8, 2010 at 1:31 pm |
  34. Heertje

    I don't know wether the americans should be worried that their already dramatic export will collapse or be happy that their currency is no longer dirt cheap. As a european i think that without the EURO all but a few european currencies would have plummeted in value and that wouldn't have helped anyone in terms of marco-economic stability. Anyone who thinks the EURO was a mistake should have paid his tuition in time.

    June 8, 2010 at 1:32 pm |
  35. Larry

    To 'The illness of Greece unfolded in the all world.', is this another 'final solution' emerging from europe? If you look at what is happening to the hard working and countries with a strategic plan for long term financial viability in the euro-zone they are getting pulled down by those that don't plan and don't work. The currency should be dropped in the countries that are not performing.

    I don't think the final solution you proposed is really an option.

    June 8, 2010 at 1:41 pm |
  36. exarmy

    I just hope the Euro fails completely.

    June 8, 2010 at 1:53 pm |
  37. GEORGE


    June 8, 2010 at 2:14 pm |
  38. Pierce

    Germans are not about to forget how much reunification cost them and how many benefits they lost. Many German cities are on the brink of bankruptcy and main street Germany is not in the mood to spend billions for blood transfusions to patients who are already on their death beds with little hope of recovery. Giving too much of your own blood makes you susceptible to the same disease that has infected the other PIIGS (plus the UK) countries.

    Because of good economic times, the Euro seemed to work in the beginning but as economic conditions have worsened, the fundamental differences between these countries, seen before as small cracks, will grow increasingly wider until some start falling into the financial abyss. Because of poor planning and greed, others may be dragged down with them.

    I can hear the faint sound of German printing presses as neue Deutsch Marks are printed and quietly stored away for the not too distant future.

    June 8, 2010 at 2:22 pm |
  39. Trey

    We still export?

    June 8, 2010 at 2:23 pm |
  40. James

    Eventually, as with all fiat currencies, the Euro will become valuless. The U.S. dollar will suffer the same consequences as well unless inflation (increasing the supply of money) is stopped. The lesson that should be learned from this is that a one world currency is a terrible idea. Look at what is happening in Europe and imagine if there was a one world currency. The entire world would be suffering through such devaluation of money. The only solution is to have more freedom in the marketplace, end legal tender laws, and allow currencies to compete. If the people or Europe could use gold, silver, or even other fiat currencies freely, then the falling price of Euros would not even affect the majority of the population. The central banks' monopolies on the creation and price of money causes the boom/bust cycle and the fall/collapse of currencies. It's the same old story, fiat currency leads to inflation which leads the the collapse of currencies. When will we learn to trade money as a commodity, and not trap people in these worthless, paper monies?

    June 8, 2010 at 2:23 pm |
  41. David

    I fully agree with you James Chater. Countries such as Greece, Italy, Spain – weaker Euro nations would benefit more without the Euro and better off with a return to their own individual currency. In fact, market wise, it even makes sense. The Euro was never a welcomed currency to begin with and in all of these countries the monetary value was blown out of proportion – salaries stayed the same – while living costs raised beyond reasonable limits – without taking into account the legal but injust abuse with rounding off figures (ex: 100pts equal to 1 euro). Sure, stronger economic countries such as Germany can easily maintain a euro currency with their strong market activity – forget the rest.

    June 8, 2010 at 2:24 pm |
  42. Jack

    The Euro means one thing.

    Germany pays, while Greece plays!

    June 8, 2010 at 2:26 pm |

    As an American Soldier stationed in Germany, but currently deployed passing through Iraq for 4 months and currently in Afghanistan, this is great! Can't wait to get back to Germany and convert some of my dollars over there to euro! Bars and clubs, here I come!

    June 8, 2010 at 2:27 pm |
  44. lochlan

    The whole rise and fall in value of the Euro against other currencies was controlled from it's beginning to today by one group of people that controls all the worlds money, the banks. They clearly raised it's value against other currencies to solidify it's existance as a currency in the minds of the world and markets, it's almost like the raise the gas prices high and then bring them down a bit game, but this is to get people to accept the existance of the currency.

    June 8, 2010 at 2:41 pm |
  45. rakesh K sharma

    It is strange that EURO is higher than US dollar, especially when we all know that US is the richest country in every respect. Unlimited natural resources, high-tech, health care, and more. However, we all know how bankers play with currencies and numbers. Finally Europe is showing what it really is, an unstable region with too many languages and limited resources. Sure they have good technology, but most of it is hyped with established brand names.

    May be it is time to put real value on EURO, which is $0.75 per EURO.

    June 8, 2010 at 2:48 pm |
  46. Klaus

    The current scenario is a financial war between the US and the Euro zone. Simply as that. It's an US cover-up for the money printing and money wasting going on in Washington. The sheer amount of debt in the US is about 35 % higher than in the Euro zone. The debt crisis should from a mathematical standpoint be in the US rather than Europe. But all the rating agencies are US influenced and play ball with the Euro. Therefore it's an al-out-financial war against the Euro. The dollar should be in a free-fall due to the incredible debts the US has.

    June 8, 2010 at 2:54 pm |
  47. stevenabb

    I never really understood why the Euro came up so much in value. It seemed like it was the "new toy on the block" of currencies. Everyone suddenly decided to use the Euro as the currency of choice for keeping value. There never has been any strong foundation that supported it's rise in popularity. Now, all the large nations are being racked by SUPER HIGH debt. Now, currency value is more the case of which one of these nations is the lesser of all debt evil.

    June 8, 2010 at 3:02 pm |
  48. Martin

    In the longrun the value of the euro will correct it self. In the short run investors are playing games.
    I mean, I don't sea the dollar drop because of california. The pound is not dropping , Britton's debt situation is the same as that of Spain.

    The truth is everyone is in too much debt, except china but they keep the value of there coin low. So which coin is weaker the Euro, the pound or the Dollar. I would say all of them.

    June 8, 2010 at 3:15 pm |
  49. Joecooool

    This is really really bad news for the tens of thousands of Europeans who bought distressed properties in the United States. Prepare for your mortgage payments to double...

    June 8, 2010 at 3:33 pm |
  50. The_Mick

    Note that the Euro was worth 97 cents the day G W Bush became president. And it was worth less than $1.20 3-4 years ago before the accumulated Bush deficits started the collapse of our dollar against the Euro.
    So these dramatic stories about the "collapse" of the Euro, when it's still worth over 20% more than it was on Jan, 20, 2001, are just too sensationalistic.

    June 8, 2010 at 3:41 pm |
  51. Ben

    If the Euro falls below the US dollar, you'll have a lot of American Tourists going to Europe. Though I would be seriously surprised if it did. I hate to hope for the Euro to lose even more value, but it's been so long since I've been in Europe, and I do miss it.

    June 8, 2010 at 3:43 pm |
  52. Sergio

    The real question is, why is the Euro higher than the Dollar, is the european economy better than the US? Do middle class people in Europe earn, per capita, more than the US middle class? Is the standard of living in Europe better than in the US? Well, as nice as it is publicize that Europe is a very nice place, and it is, and that their citizens enjoy public health care, some countries do provide that; well, not every thing is greener on the other side of the pond. Nope, the economy and American products, in most markets, outperform and out-produce its European counterparts. Definitely, the standard of living here in the U.S. is well above most of Europe's. So, why is the Euro higher than the Dollar, plain and simple, speculation and manipulation. Europe can't really back the strength of the Euro, the US at least, even with its enormous debt, can still outperform European markets, any time of the day. There are indeed some exceptions, but that's it, exceptions. Does it matter if the Euro is higher than the Dollar? well, yes, exports is one reason why it matters, but overall. Europeans should help strengthen the Dollar to help them continue to grow w/o having to divert efforts as to how to keep their currency from going under. If it wasn't for some alarmists out there, we'd all be better off trying to strengthening the good-old green. For good or bad, it is the currency that keeps the world spinning around at this time.

    June 8, 2010 at 3:43 pm |
  53. andres ibarra


    June 8, 2010 at 3:45 pm |
  54. Peet

    Forget the value of the euro, it appears to be the end of the nanny states..so should the topic not really be: "Can young europeans take care of themselves and hold their own against matured, disciplined, skilled and hard- working youngsters in Asian countries?"

    June 8, 2010 at 3:49 pm |
  55. Jo

    Hold on Europe, I am on my way with lots of money (dollars and Euros) to spend............................

    June 8, 2010 at 3:54 pm |
  56. Money!!

    All the european countries need to go back to there original currency. This whole euro deal is part of the preoblem.

    June 8, 2010 at 3:59 pm |
  57. Jeff

    Unfortunately the US media paint a dark picture of Socialism and make capitalism a panacea. The answer lies somewhere in between.
    In Canada we think that we are close to the right answer – but it still needs work. The Euro and the US dollar will still drop more so that they can compete with Asia. Unfortunately the gravy train days are over for many. The wealthy need to start paying more tax and workers need to start retiring at 65 again in Europe.
    The only thing for sure is that there is not a catastrophe waiting at the end of the tunnel – just more tunnel for awhile.

    June 8, 2010 at 4:10 pm |
  58. El Lepero

    The Euro has been over valued for too long. A correct conversion should be $1.00 = 1 Euro. Since Europe was eager to expand its numbers it has taken in countries which are too poor to complete. The pillars of the Euro remain Germany and France. All other countries cannot compete.

    June 8, 2010 at 4:21 pm |
  59. Tim

    I hope the Euro keeps dropping...I'm traveling to Europe this summer!

    June 8, 2010 at 4:22 pm |
  60. Alex Winter

    Parity with the dollar by 2011.

    June 8, 2010 at 4:34 pm |
  61. Eve

    The debt levels given here concern the whole E.U, whereas the Euro is the currency of not even half the E.U. The eurozone consists – as far as I know – of the following 13 of the 25 E.U. countries (Germany, Sweden, France, Italy, Greece, Portugal, Spain, Netherlands, Belgium, Luxembourg, Slowenia, Austria, and newly admitted, Estonia), and the U.S. debt is certainly not lower than the debt in any of these countries (you cannot just add it all up, as each country is still independent). Moreover, in the U.S. you have states like NY which are almost insolvent. So the situation in the U.S. is certainly not better than in Europe, and as soon as the investors realize that, the euro will climb back.

    June 8, 2010 at 4:35 pm |
  62. Damnedcontinentalforeigner

    I agree with those who attribute the movements to speculators.More precisely, to Anglosaxon scaremongering having a center of gravity located right in the middle of the Atlantic ocean, that is, between New York and London.

    June 8, 2010 at 4:44 pm |
  63. Joshua

    Soon to be taking a bath in 500 EURO notes... Thats what happens when paper money is made in too large of denominations; firs,t smuggling, and second smuggling the things that you assuredly do not want to see.

    June 8, 2010 at 5:02 pm |
  64. Robert

    There is concern about European debt, but what about US debt? The fiscal fundamentals aren't that dissimilar. The US is arguably stronger because of growing population and better access to resources. I also don't see how the relative position between the US and Europe has changed that much over the past decade. Certainly, I find no justification for the exchange rate swinging from over the ridiculously wide range of 1EUR=1.6US to 1EUR=0.9US. It looks like kneejerk selling of the US dollar is temporarily replaced with kneejerk selling of the Euro.

    June 8, 2010 at 5:07 pm |
  65. Richard James

    Spain? Portugal? Poland? Wait until they pull the blankets off of Italy...the corrupt king of the hide the weinie game... LMAO...

    June 8, 2010 at 5:07 pm |
  66. bozo

    When I was in rome in 2000, it was $0.87 us to the Euro.. It still cost more to take the train from Rome to Florence than it did to fly from San Francisco to New York! Sandwiches were u.s. $8.00 each and dinner was never less than us $65.00 for 2. I hate to think what it costs now!

    June 8, 2010 at 5:28 pm |
  67. rajesh

    Wake up people. How can the Euro be worth1.5 to the dollar a few months ago, and now be heading to parity ? These are frikking countries, and not dotcom stocks. Somebody is messing with your head – CNBC, hedgefunds, CNN, the usual suspects. When the market moves on a whim and a speculation, the smart money makes more money. The stupid money just watches the news.

    June 8, 2010 at 5:45 pm |
  68. Carlie

    Its just interesting to see the balance of currencies in the world. Every country seems to want more for themselves, which leads to a higher debt. However, I am curious on what any country would look like if they were on budget. Debt has help innovation but there is still that risk. I guess we are just waiting to see... "When is it our turn to default?" How could we let these "bills" pile up?

    June 8, 2010 at 5:59 pm |
  69. desert voice

    The fall of the euro is sweet music to the American senior citizens retiring in Europe. The more euro falls, the more their Social Security checks buy. The euro needs to be paired to the dollar, to compete with the Chinese yuan. I have always advocated a single currency, the ameuro to counter the Chinese. The European Union got a shock of its life when poorer member nations demanded high standards of living like everybody else. This quest for equality was not expected by the EU architects. They assumed that the poor had no ambitions, and that they would always remain poor. After Greece, we know that they have miscalculated. The next poor yearning masses revolt is to be expected in Spain, Portugal, Italy, and so on. The euro can't stretch this much. it's not a rubber band! It is bound to break! The only hope is that the gene of Democracy will be put back in the traditional box, which is another way of saying that the poor will agree to give up their European Dream!

    June 8, 2010 at 6:03 pm |
  70. Murray Mitchell

    My understanding of the facts was that the Euro was suppossed to have a rate near parity with the US dollar, so the falls should not be unexpected. Seems to me there is a lot of hype/panic about any finacial movements. Isn't time these traders and finacial analysts grew a pair and actually did some real trading! Seems they all hide behind the trading programs which are not working!!!

    The time has trul arrived when governments need to take charge, not to regulate the market, but to take action so that world economies are not at the mercy of sudden moves on the markets.

    June 8, 2010 at 6:05 pm |
  71. FatnHappy

    The idea of consolidating fiscal policy and every country under a common currency is absurd. The idea is idiotic at best. Until there is common political policy it simply wont work. Entitlement programs and future obligations are at the cruxt of this fiasco. These thing need to be standardized for all members or you will have chaos like we are seeing now. The Germans have every right to not go along and support freeloaders. Why should one population hold their end and support others that dont ( retire at age 50 etc)...

    June 8, 2010 at 6:06 pm |
  72. Average Joe

    The Euro is finally being exposed for what it is. Historically, it is chartered much like the American Articles of Confederation. Not much in terms of central power or ability to enforce its policies. I believe it would already be below the dollar if the US fiscal house was in any decent order. It is headed there nonetheless, as people are realizing the true condition of the EURO economies. The public sector is much too large and cannot be supported by the private sector any longer.

    June 8, 2010 at 6:14 pm |
  73. Rachel97

    Americans are coming?, isn't America drowning in its own problem if not for the downfall of Lehman Brothers and the subprime loans which the Wall Street Giant have repackaged and sold worldwide which caused the whole economy to collapse.

    I think that Euro should go down to bring in the much needed boast in our economy, investors from other non EU country can invest more in Europe and pour in some needed funding and work that EU needs at the moment.

    We better start saving soon because if money gets cheaper, the banks (IMF) would start increasing interest rates again.

    June 8, 2010 at 6:24 pm |
  74. Ben

    We should have a UN currency- and it should not change its value.
    Products and services should have a fixed price/cost range and it can't fluctate value beyon't the limit based on this currency.

    June 8, 2010 at 6:47 pm |
  75. DAVID

    i am manufacture in usa and we sell to europe but sales have tanked with the dollar gaining on the euro...i cant be only one selling less into europe now, i think lower dollar is better for usa economy, higher dollar might be better for rich folks traveling to europe.

    June 8, 2010 at 6:54 pm |
  76. jabir

    we need strong er refom policies to help strennghen the eurozone and alsoneed to restructure labour makers tohelp workers and companies tocreate enployment/

    June 8, 2010 at 7:01 pm |
  77. Jim

    This is what you get when you combine dissimilar economies and diametrically opposed work standards. I say, Burn, Baby, Burn!
    Nothing like putting all your eggs in one basket!

    June 8, 2010 at 7:06 pm |
  78. Charles I. Johnson

    The uncertainty associated with the Euro stems from the lack of a federal system in Europe. As a result there is nothing to stop a member state to not manage finances responsibly which is what has brought us to the mess in which we now find ourselves. So, the real question is: can the differing countries find enough common ground to join into such an agreement. I don't know the answer, but it must be done or the Euro will fail in the weaker members and raise the ire of responsible persons living in countries bailing out the weaker. Taken to it's extreme, this will eventually bring about the end of the union. The sooner this is discussed in public forum the populace will come to appreciate the decision that must be made and instruct their representatives accordingly.

    June 8, 2010 at 8:14 pm |
  79. MrRizibiz

    ok, my English isn`t the best, excuse me for this ;-)
    EU has grown to fast. Until 1990 there were 8 or 10 countries unitied in EG (Europäische Gemeinschaft = european community). Since 1995 up today EU has grown up to 27 countries, including a lot of former countries from the east, as bulgaria, poland and so on.....
    But that was not enough for responsibles in Brussels, they thought, we need all the countries of europe in EU, also countries, which are from point of geographie not in Europe, such as Turkey, even Israel! Each of them in Brussels thought to force his interestings in joining this countries in EU. The joining of Turkey (in the next 10 – 20 years) had been 1 year ago a question of priority in the EU.
    From this 27 countries have, i believe, 16 the eure as currency.
    The Euro started in 2002 with 1,15 : 1 to the USD. There is not 1 year ago, when idiotic people said, the EURO will be the world-currency in the next years.
    From 1,15 : 1 up to 1,50 : 1 and down to actually 1,20 : 1 – what shalls? The Euro was over-valued a lot of time. I for me don`t understand this hystery about Euro. And when it falls to 1,15 : 1, wheres the problem? Ok, Greece, Italy, probably Spain or Portugal have debts. Tell me a country, which has no debts. Countries probably in Middle or South-America, or Africa. There are enough countires among them, having more depts than Euro-countries. That Euro goes down in this times, is a reason of speculations on the Euro, also a reason of rating-agencies (there are only 3 in the world, 2 in USA, 1 in UK – and UK doesnt use the Euro and is strict against it). One more reason, to understand, what the reasons are to make the Euro weak in last times.........
    EU with currently 500 Million people is a cool "vision" for the future, without wars and problems, we had for centuries. Although EU does`nt have ONLY advantages, no. In the meanwhile, 70 – 80% of laws of each member-country are made already in Brussels.
    But i`m sure, that the currency "Euro" with its 16 countries will survive, there is no return to "D-Mark", or "Lire" and so on.....

    June 9, 2010 at 12:52 am |
  80. Alexander

    The geopolitics function or the new empire.

    Dear friends you have to look deepest.

    If you don’t stop Iran and new Ottoman Empire we are not even exist in Mediterranean Sea.
    Greece Israel Cyprus they do not exist from the political map, look at history.

    So either you have to finish the job in Iran and punishment the Islam fascism in Mediterranean and create one central financing system for Dollar and euro because the problem beginning from mama America or your leave the German play the game in European union Fourth Reich.

    So either we are gone to create Anglo-Saxon empire whatever is gone be this new roman or this new empire as we seat before for the final solution or we are not exist and the people that they not leave in this area they don’t understand what happened.

    Is not only the finance gentleman’s looking deepest.

    June 9, 2010 at 1:18 am |
  81. elmahdi

    The Euro will continue to depreciate over the next few months until it hits parity with the US Dollar some time in August. Then there will be war. The price of petrol will jump from $65 a barrel to $125 a barrel. The price of gold will reach $2000/ounce. The Euro will bounce back by the end of the year and be at 1,50 against the dollar again.

    June 9, 2010 at 2:34 am |
  82. Tim

    just wait until Berlusconi brings out financial figures in the near future. If you think Greece was hiding their overflow of credit and covered up their financial disasters – Italy is expected to be even more shocking. This is just the beginning of a huge mess that was waiting to happen. A common currency just doesn't make financial sense for the many weaker nations – never did – never will. Example: imagine the Thai currency would ever hold a strong like currency such as the euro, result: this would instantly crush their economy – made up on afordable tourism alone – people travel to these countries because your buck is worth more over there. Another example: Spain, financially maintained by tourism was a great attraction in the past with the peseta – also made sense with their local standard of living. Now prices to travel to Spain sky rocketed to unatractive levels – I even prefer to go elsewhere when travelling europe. In conclusion: the euro currency is not a positive currency to maintain. Only raised the cost of living and dumped wages to incredible proportions – in fact, I'm surprised that europeans haven't manifested their genuine discontent from the beginning. If they haven't, it's only due to the fact that Europeans are highly resilient to suffering from many wars – sadly they learned to adapt to tough times.

    June 9, 2010 at 10:08 am |
  83. Carafino

    The Euro rocks, it is in a class by itself. Representing power, style and everything about the meditarrainean. The Euro will come back, for now let the dollar be stronger to bring stability to the World's currency establisher.

    June 9, 2010 at 10:48 am |
  84. bassam murtada

    just wait for the figures to appear this just the tip of the iceberg the problem is more deep than that it goes back to the beginning of the European community many plans which could have helped to face this were neglected and thrown in the drawers for further studying if it was implemented this wouldn't have reached this stage of crises there's so many solutions that were thrown away just because it didn't suit the countries with large economies like France, Germany, Britain and others where these plans would have served the weaker countries to push their economy to an acceptable percentage of growth that will make these countries an active partner in the European community, but that doesn't suit some so all the projects and plans were deliberately ignored just to keep some under control. what they didn't count on is the expansion of the European community by integrating more countries into it those the enemies of the past the partners of today bringing with them all the problems they had along with the problems of adapting to the laws of the European community which exerted more pressure on the European strong countries, beside the spread of the population of those countries which was targeted towards those countries who are in crises right now. The only way to deal with their problems now is to start with the reformation from scratch, but many are against that. So the question is when they will start to do something about it, not what will they do about it? those plans they already have it just needs to upgraded to the level they are in and implemented, then and only then this crises will start to find its solution, otherwise someone must take a step ahead to force them to do this because their fall will affect all and make a gap in the global economy which we all know is open for the take by those we know they don't belong that position and form a threat to the world balance which is as fragile it is...!!!

    June 9, 2010 at 11:37 am |
  85. Mihai

    for all those doomspeakers ,your look like idiots in 1 yeah when euro is back to 1.5 $ but yeah , now is your time to shine ...
    also as someone said most western news groups(especialy us ones) practis news terorism as someone said , Cnn included

    June 9, 2010 at 3:44 pm |
  86. Richard Hagen

    I am not sure how low the Euro will go, however I am vacationing in Greece and am flying there this coming Sunday. My hotel and tour packages are priced in Euros for the trip :-) I am a happy camper as I have seen the amount I expect to pay plummet. This will give us more money to spend on other things while there and should make this vacation even more enjoyable. Rich

    June 9, 2010 at 5:38 pm |
  87. Javier

    back to basics. spend less than what you earn. that will be the future of the euro, dollar, or any economy for that matter.

    June 9, 2010 at 6:46 pm |
  88. aleck

    If it would go further down, that would be dramatic, but not for Europe, of course. For Europe that is just a dream.
    And yes, up-and-down – that is a usual typical constant game, where a lot of very strong forces are involved ;) I would call them political -economical terrorists who developed a huge greed market- manipulating system.

    June 9, 2010 at 7:13 pm |
  89. mehmet bulbul

    why is euro decreacing and haw many time will this occasion

    June 9, 2010 at 7:29 pm |
  90. bassam murtada

    for those who are looking at tourism only may i remind them that they must look at the other problems the Europeans have. 1st the stumbled banks those who we know about and amount of impact of one bank that stumbles down on the whole economy of one country now do the MATH for yourselves, 2nd the huge companies that have huge problems "BP for an example" already their problems impact on the banks itself and eventually on the whole economy of the countries now recalculate again. 3rd the global economy depression and its impact on both banks and huge companies "lesser revenues" for all which will reflect on small businesses and of-course will mean less income to the countries itself, now recalculate again. 4th all European countries offer services to its people the impact of "lesser revenues" on that because these services to those who really knows about it is a source of income for huge service companies which will reflect more on the economy, now recalculate again. 5th source of tourism in Europe 60 % from inner countries 40% from the outside less income to all means...now recalculate again. 6th "politics" ="economical trust" no space is enough to talk about that here so do the math again and recalculate. For those who don't see the larger picture please don't think about you only generalize to see the large picture then criticize and give your opinion about it. the market is being manipulated with but not for long, but before calculating that just take a look at what happened in the past few years "gold & oil" for example then do the math and calculate, and after that give your opinion...!!! :)

    June 10, 2010 at 8:57 am |
  91. Giuseppe2009

    Euro now is lower because of the current crisis, in Europe, but when it will be resolved the euro will go back up again.
    In the USA the export is much less then Europe, the gap between export and imports is very high here in the US.With time again the euro will be stronger just because of traditions, concepts and mentality.Americans tends to spend well over their means, Europeans do not.

    June 10, 2010 at 3:05 pm |
  92. Marius

    Take the Romania sample. The national currency is LEI,, and 1 Euro is 4,2 LEI. We have same values from 4 years ago. So when Euro loose points in parity with dollar, we loose export profit, and national economy goes down. Still is an industry who`s going up all the time. That is web design made in Romania. here you have a sample http://www.freelinedesign.eu/index1.html

    June 11, 2010 at 6:05 am |
  93. Business 361

    We are not characterized any body and we are not speak for terrorism but for worrying behaviors in the East Mediterranean area.

    We speak for reestablish of finance system.
    European Union has to turn from European Union to real European States Union as in USA if they want to solve the problem or they have to reestablish one central finance system for two continents and why ? Because of globalization.

    Answer for those who characterize as they said idiots.

    *The opinions expressed in this commentary are solely those of

    Isaak.L from Jerusalem

    or spqe

    June 11, 2010 at 6:51 am |
  94. Stefan

    The real question is...how long will the US Dollar remain as low as it is? I didn't hear any articles about the future of the dollar when the exchange rate was 1.60., but when the euro slides but is still 1.2. times the value of a dollar, it's existence is called into question. Do I sense schadenfreude? A desire for the euro to fail by the Americans?

    June 11, 2010 at 8:14 am |
  95. p.picavet

    Europ is an over expensive, non colaborative, chauvenist an egoist union. -Since the creation of the european union and the euro the whole populationof europ lost purchasing power.
    -The chauvenismus of all the big members, you even can feel in the actual written coments, makes the real union impossible. The only people who get better of the euro are the representatives and their employees, multinationals and theire lobby (in Brussels there are about 40 to 50 000 who wine, dine and entertain our "LEADERS", make yourself the calculation of this cost.
    -The ridiculous traveling between strabourg and Brussels including all translaters and staf,make again the calculation of the cost.
    -Eeach representative gets about 300euro a day only expenses they sleep together and the loby pays the rest).
    -The europ union is killing althe small business and the european racy of europ who identity.
    -How do you want to create respect. Some states pay the bill. For example a German must work until 67 and now needs to help the Greek who can retire at 45 how would you feel as a modern slave.
    -Other example a cleaning lady in brussels earns 3 to 4000 euro net a month a normal worker in a factory 1200 to 1500 if he is lucky, how do you feel.
    -Other as european you help spain but as tourist you buy a house in the Same Spain bu the urbanisation and/or maintenance or subsudies are distributed only to the Spainish people how do you feel now.
    -Continiously people manifest for the stupid burocratic rules who kils their family bussines and help the multinationls become stronger. but no one takes care of the fact that the GBP in europ is made for 75% by those small bussines not the multinationals who pay most of the lobbys. So a question where do we need to save money?
    The small list above could continue for days I feel sorry because the same can not be done for the possitive list. I traveld for 25 years around the world and intensivly in Europ since 2000 all went down people in europ are unhappy and are more and more against europ because our "leaders" live in an other world and only they improve there live standards..

    June 11, 2010 at 12:00 pm |
  96. nick

    If Spain or Italy need a bailout watch out below

    June 11, 2010 at 7:15 pm |
  97. Joshua Zwart

    Europa is an idea, an ideal, not a currency!

    June 13, 2010 at 5:54 pm |
  98. Yaron_C

    As other people, probably wiser than me have already said...it's a matter of time. If Europe decides to stay unite, it will have to focus on finding ways to help its weakest links such as Greece and Spain, and stable the financial situation with creative ways. This is the only way to maintain the Euro as a strong currency. It's not easy, it's a challenge for Europe as a continent, but that's the real thing I would say. It can also be a long process, but I assume that the european nature of beeing conservative with money, save and not spend, can lead Europe to a better situation, if the financial staff do its job well, and plan the future of this continent, at least financially, thinking about the long range and not only on getting out of the current crisis.

    June 13, 2010 at 9:04 pm |
  99. Vincent

    Wait until the end of summer around the American labor day and into September when the Europeans come back from vacation. Due to deep austerity programs imposed by all EU countries (north Europe), there will be national strikes by all the labor unions to express their discontent. That is when the currency markets will react and the euros will start to drop sharply.

    June 14, 2010 at 3:26 am |
  100. El Lepero

    No question about it, the Euro should equal $1.00. The Europeans have been living in a dream world. Tourism is down, exports are down, how long do they think this can last.

    June 15, 2010 at 7:46 pm |
  101. Jim

    Don't worry be happy.Don't cry no more baby about nickels and dimes. Who gives will also receive. Love. I do want to shop for new clothes. And a extra car would also be nice.
    Boat is very nice too. But please no ship of prejudiced fools. Its all in your mind.
    I am in a good mood and we, the dutch won pleasantly from our friend Denmark. I think I take the Loveboat when the oil leak is been fixed good (-:

    June 15, 2010 at 10:20 pm |
  102. Americana

    EU is not much better than USA; except lots of old castles, lots of historical vampire bulidings. The EU should be at par with the USA, not stronger ! ! !

    June 16, 2010 at 6:30 am |
  103. Mitch

    I have read all the things above and normally i'm not someone who responses.

    What I noticed is how small some people think (especially some of the comments in this topic). I life in The Netherlands and it is still strong. We know that the euro is losing value but everybody is working hard to get through the financial crisis. And then someone posted: "I just hope the Euro fails completely." Why? There are honest people working hard for their money just to live.

    The media is only looking at the dark side of the Euro, the good side is been let completely out of the picture. But off course that isn't so exciting on the news, it's not entertaining.

    Yes, there are a lot country's like greece and spain who didn't have done their homework correct. Personally I think that the weak country's should leave the Eurozone. But not without helping them to steady their finance.

    I agree about the facts that when the Euro started everything was made higher in price except the salary. This was especially hard for the people who had allready been working for years. I just started with my first job and after a couple of years i doubled my salary. Everybody got used to the new standards and are not recalculating in the old currency.

    A good thing of the Euro is that if you travel a lot like I do i never have to think about how much something cost. Maybe for people who are used to the dollar can't imaging that. For instance if you drive throught The Netherlands, Germany, Belgium and Luxembourg, you can do that in 5 hours, imaging that you need 4 currency's for that small trip ;) I think that the Euro need some drastic changes and the country's should be responsible for their own finance. But the Euro is going to be a stable currency again. After the financial crisis is over. In the end it is better for us al.

    June 17, 2010 at 9:07 am |
  104. Davis Bradley

    Euro devaluation is being driven by U.S.-based credit agencies and U.S.-based news agencies at the prompting of the U.S. banking community. It's pure nationalistic opportunism designed to improve the U.S. economy. U.S. has for years wanted to see the Euro die and right now (based on the comments) a lot of Americans are gleefully watching the Euro fall.

    Be careful what you wish for. Americans may hate Europe but we have no such animosity towards the Americans. So, just leave us alone and stop mucking up our economy with the Euro-bashing journalism.

    June 18, 2010 at 12:07 pm |
  105. JKA

    I love how fickle all these experts and articles are. One day the Euro will replace everything to become the world's reserve currency, the next day it is bloated and over-valued. One day a strong Euro is great for the EU and is a testament to their economic strength and success, the next day a weaker Euro will only serve to bolster exports. The more I read these ever-changing predictions and backwards narratives on markets and currency, the more I'm convinced no one knows what they are really talking about.

    June 19, 2010 at 9:14 am |
  106. Campi G L

    The last low of € vs $ was in february 2009 with 1.17.
    There's a mistake in the article.
    € will koin 1.05 during the Us markets collpse because of Us finacials bankruptcies and then will rocket to 2.5.Usa will pay the out of control global debt before by bankruptcies and then by hyperinflaction and very weak $.

    June 26, 2010 at 2:19 pm |
  107. P.Petropoulos

    Let's leave PIGS and PIIGS to the pigs. GIPS and GIIPS are more decent.

    July 5, 2010 at 1:35 pm |
  108. machine a sous

    If the principle of a communal network is to fit with other people, you prerequisite a group network that has copiousness of members. And Facebook plainly has masses of members, notwithstanding all the adversarial publicity it has received lately all round its clandestineness problems. want all 500 million Facebook users resettle to Google Me? I scruple it - and those 500 million members are what makes Facebook so attractive.

    October 3, 2010 at 12:45 am |
  109. icons archive

    At me a similar situation. Let's discuss.

    October 7, 2012 at 11:52 pm |

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