Since June, the euro has continued its slide against the dollar, but many of the reasons cited for its decline fail a simple test. If the cause of the euro’s weakness is merely the relative strength of the U.S. economy or a high degree of confidence in Alan Greenspan, the dollar should show comparable strength against the Japanese yen, but that does not seem to be the case. Rather, the yen has held steady against the dollar in both spot and futures markets.
Suggested citation: "Exchange Rates," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-11, pp. 08, 11.01.2000.