2007-11-25 06:34:43 · 2 answers · asked by Anonymous in Social Science ➔ Economics
It is incorrect to say that the euro costs more than the dollar. The exchange rate tells you how many euros it takes to buy a dollar. That amount goes up or down depending on the willingness of those holding dollars to give up their dollars for euros, and vice versa.
The demand for dollars has been decreasing over the past few years. The demand for euros is increasing.
Why? Less interest on the part of foreigners to buy dollars and invest in US securities, mostly.
2007-11-29 00:57:58 · answer #1 · answered by Allan 6 · 1⤊ 0⤋
Why not? When it was originally created, back in 1999, it cost $1.18 So the question should be, how has the the exchange rate between the Euro and the dollar varied and why?
If you want good answers, you have to ask good questions. That means doing some thinking and research on your own.
In the meantime, check out:
http://en.wikipedia.org/wiki/Euro
2007-11-26 13:08:03 · answer #2 · answered by simplicitus 7 · 0⤊ 0⤋