Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

More than 100 Nigerian schoolgirls still missing after Boko Haram attack

Read more

FOCUS

Italy helps integrate asylum seekers through training schemes

Read more

ENCORE!

Film show: Berlinale, 'The Shape of Water' and 'I, Tonya'

Read more

ACCESS ASIA

Korea's divided families: Hopes for a reunion after decades apart

Read more

MIDDLE EAST MATTERS

Iranian singer Sepideh Jandaghi: The trapped voice

Read more

IN THE PRESS

Royal gatecrasher! Queen Elizabeth attends London Fashion Week

Read more

BUSINESS DAILY

Venezuela launches its own cryptocurrency

Read more

IN THE PRESS

The secrets of Jean-Marie Le Pen: Far-right party founder publishes tell-all

Read more

EYE ON AFRICA

Tens of thousands bid farewell to Morgan Tsvangirai

Read more

Euro breaks $1.50 mark

Latest update : 2008-02-27

The euro broke the 1.50-dollar mark for the first time ever Tuesday in the wake of lackluster US economic reports and stronger resilience in European countries. (Story: C. Norris-Trent)

According to FRANCE 24's business editor Douglas Herbert, the euro's rising value is partly due to a surprise improvement in the outlook of German business managers. It is also related to a 12-point fall in the US consumer confidence index in February.

 

This is not the first time  the US dollar has depreciated. Its value started to fall in 2007 as the property crisis gripped America, with many households unable to repay their mortgages. The ensuing credit shortage dragged global financial markets down.

Meanwhile, the US Federal Reserve adopted a softer policy on interest rates, which has mechanically depreciated the value of the dollar compared to the euro. The Euro Zone has also shown resilience to the US subprime crisis, leading the European Central Bank to maintain relatively high interest rates.

 

The dollar's plummetting value has made commodities dearer, especially oil. Its price rose to a record $101.43 in New York yesterday. But FRANCE 24 business correspondent Baptiste Fallevoz sees other reasons behind rocketing oil prices: the rumour has it that the OPEC cartel will soon reduce its production, and the Turkish invasion in Iraq's Kurd region has been exacerbating tensions. "In short, all the ingredients of a surge in oil prices are there. We just have to see for how long," he said.

Date created : 2008-02-27

COMMENT(S)