Well, this may not appear sensational but the currency trading much higher than its low made earliear this year and rallied hard thereafter. Inherently, the rise coincides with fall of $ and conjoins with rise in Gold and other precious metals. The FED's easing and twisting is abetting the fall of Euro, as an indirect back up.
Euro as an Alternative to Dollar was a serious talk, among many asian and European economists and Politicians. US has turned the tables and saved the currency. at least, for the next foreseeable future. The epithet of PIGS a Wall street consecrate for slinging the Euro. While, the debt markets more controlled by Wall street bankers and Independent countries are beneficiaries of the crisis. Its pay back for the European, for the Mutiny against Greenback.
Alan Greenspan and co., never appreciated the even existence and abhorred its Rise. US always felt threatened and greenback was actually challenged by China, alongwith Germany and France. Post 2008, the questions about Dollar's existence as Reserve Currency were raised, threatening the US's economic might. In last 18 months now Euro is on the brink of a deep fall, straight away in the grave. The fears of Euro to end in next week or in a month are now being discounted .
The currency markets have yet to write off , Euro. Its still trading as a vary credible currency. It shows the health of the currency and indicates the bankruptcy of the Dollar. As a matter of fact the pair traded at 1.15 in the beginning of the crisis, at the start of this year, which is currently much above that.
The interest rate in Euro zone is above that is prevailing in US, but much below that in many Asian countries like India, China and Brazil.
Albeit, inherent and technical coordination in constituents of Euro are dissipation of political bankruptcy and short sightedness.
Euro's fission thus appears to be unreality. While, the political conviction to keep EURO afloat appears to be dwindling in to the oblivion.
Still, its unlikely that Euro will be break, as a matter of fact, in case, the weaker part of EURO exit the consortium, which may strengthen the intrinsic Euro value.
The stitching and patching exercise is making EURO undeniable and a strong currency. In Times to come Only, to replace the Gold. But, Wait for it, to come out of this dreadful Night
Even, Gold has to meets fire first, then Glitters.
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