Euro Currency Plunging Against the US Dollar

Yesterday, I noticed that the value of the US dollar strengthened considerably relative to a basket of currencies, which also led to a decline in the price of gold in US dollars. I wondered what the trigger was. It appears to have been the result of a major plunge in the Euro–it dropped by nearly 15% against the dollar in a single day! This is unheard of. Click on the link below for an explanation that I think is right.

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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