The Value of the Euro Against the Dollar Increased

The value of the Euro against the dollar has increased. The value of the US dollar fell below that of the Euro, the single currency of the European Union. This is the first time since the Euro became the official currency of the EU two and a half years ago that the Euro has surpassed the dollar. On Monday, during the closure of the New York Stock Exchange, each Euro was exchanged for slightly more than 1 dollar, while at the end of Friday, the Euro was trading at 99 cents. In recent weeks, the dollar and Euro had been nearly equal, but the rise in the value of the Euro against the US dollar on Monday is psychologically significant for the European single currency. Financial analysts say that the strength of the Euro has not increased, but rather the ongoing economic problems in the US have caused the dollar to decline. There have been no encouraging news from the 12 Eurozone countries, and this European single currency has shown weak growth in the second quarter of the calendar year. Analysts state that if major American companies can regain investor confidence after overcoming financial scandals, the dollar may once again surpass the Euro. The decline in the value of the dollar may weaken American consumers' desire to purchase foreign goods. Conversely, American exporters may find it easier to sell their products in foreign markets. A stronger Euro also means less inflation and cheaper imported energy for Europeans.