The Euro has broken through parity level with the USD to close at 1.0064 USD at the end of Tuesday’s trading.
Launched on 4th January, 1999 at 1.17 USD, the Euro plunged to a historic low of 82 cents in October 2000. It was so weak that the Central banks had to effect emergency purchases of Euro to stabilise the value of the currency.
However, after a spate of corporate scandals (Enron and WorldCom) with more feared in the pipeline, confidence in the assets in the US corporate body has been affected. This, coupled with an expected 35 bn. USD current account deficit to be announced next Friday, has exerted extra pressure on the dollar.
John ASHTEAD PRAVDA.Ru London United Kingdom