The euro is plunging – and probably won't bounce back soon

The euro has weakened against the US dollar since the beginning of 2021, from around US$1.23 to its current exchange rate of US$1.13. That’s a fall of about 9%, which is significant, especially since these are the two major currencies of the world. The drop has also intensified in November, falling 3% since the turn of a month, which has seen violence in European capitals over COVID restrictions, migrant problems at the Belarus-Poland border and Russian troops amassing on the border of Ukraine.

The decline should be seen in a broader context, though. The euro is still stronger than…

© La Conversation - mardi 23 novembre 2021