By: Sara Patterson
The Euro’s rally against the US dollar is being questioned as EU leaders continue to battle the region’s sovereign debt crisis and optimism about the U.S. economy increases. The Euro has appreciated nearly 9% against the dollar from this year’s low. The Euro appreciated 1.7 percent last week to $1.3987, and is up from this year’s low of $1.2867. Last week, European Central Bank President Jean-Claude Trichet projected that the ECB may raise its benchmark rate from 1% as early as April.
Since January, the Euro has risen notably, including a 3.8% rise against the British Pound since January 10th and 4.1% against the Swiss Franc since January 3rd. Still, the currency’s relative strength may be called into question as bailout programs and austerity measures in the company’s weaker regions are put into effect.