The euro fell further against other major currencies in September, prompting the European Central Bank to intervene on foreign exchange markets for the first time since the European single currency’s creation in January 1999.
The concerted intervention with the US Federal Reserve, the Bank of Japan and the Bank of England was not enough to reverse the trend.
Its average value slipped to 1.1484 per dollar in September, from 1.1059 in August. By the end of the first week of October it was trading at 1.1506 to the dollar, as a surprise euro zone interest rate rise sent the currency back down to pre-intervention levels.
The euro has in fact fallen steadily in value since the single currency was launched two years ago. But the currency is still high compared to 1985, when a basket of European currencies traded at less than 70 cents to the dollar.
©OECD Observer November 2000