In August 2003, the U.S. Dollar rose in value against the Euroas reports showed the Europes economy failed to?

Question

& Germany even fell into a recession.Explain what the above statement means (12 mrks)

Answer 1

Americas dollar raied the euro was unchanged or fell which means the european union is having difficulty with their economic situation

Answer 2

No currency remain unchanged over a long period.It is not an indication of a failed economy.The change in 2003 may be a case of aberration.I think it is not due to failure of Eorope's economy.What had happened in 2003 was there was unprecedented demand from developing countries for US $ dollar investment purposes.The demand for US $ was very high from China,India and Japan(they donot demand Euro).That explains for the position of US $ in 2003.