- The Euro depreciated against the US dollars because it is tied
to the US market in number of indirect ways.
- The Euro is a standard currency of European Union.
- Strong Exchange rate for the Euro affects US stocks
positively.
- As the two zone Economy improved,othe European central bank
contributed to the confidence in Euro which led to the fall of US
dollar.
- Euro has a surplus in current account, which the US has a
growing deficit that led to the depreciation of dollar.
- Another reason is the country's likely to shift their official
reserves out of dollars in to Euro.
These countries link their Exchange rate to European currencies
to Mark their trade.
- The Advent of Euro led to the Enlargement of security markets
in Euro land.