The Rise of the Euro and European Currency

In the last few years, the United States Dollar has begun to see a fall against the newer and more valuable Euro. Used across Europe and in consideration in other countries for possible introduction in the next decade or so, the Euro is worth approximately 1.35 US dollars at the moment and has just recently surpassed the dollar in total worldwide value in circulation. As of the last month in 2006, the Euro was at 610 billion in circulation, equivalent to approximately eight hundred billion United States dollars. The Euro has continued to rise against the dollar recently and, if trends continue, may become the leading force in international economics.

The only other serious competitor in the international currency market is the Japanese yen, which gained some use worldwide during the 1980s, but relapsed slightly in the Japanese economic recession a decade later. These days, most countries peg their own currencies against the United States dollar, but more are increasingly switching to the Euro or the yen as the dollar falls in value against its competition.