Via the BBC: Dollar hits new low against euro
The greenback dropped below the psychologically important $1.40 against the euro, deepening recent losses.
The euro jumped to $1.4018 in early Thursday trading, the highest since the launch of the single European currency.
Breaking that barrier has long been viewed by analysts and markets as a key turning point in solidifying the euro’s position in global currency markets, and will provide more impetus for it to be the reserve currency of choice — a position long held by the now-weakening U.S. dollar.
[…]
David Jones, chief market analyst at CMC Markets in London, said the euro’s rise is not likely to abate in the coming days, particularly later Thursday when traders wait to hear what U.S. Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Henry Paulson say about the U.S. mortgage market in testimony before the U.S. Congress.
[…]
The dollar also fell against other currencies, dipping against the British pound to $2.0073 compared with $2.0025 late Wednesday, after U.K. retail sales in August rose by 0.6 percent from July.
Back to the BBC story:
Analysts have said that the impact of the plunging dollar on European consumer and businesses may be mixed.
Eurozone consumers may benefit from cheaper prices for some imported goods.
At the same time, there is some good news for eurozone companies because oil, metals and many raw material prices are quoted in dollars, meaning that the strength of the euro should dampen firms’ input costs.
However, while the strong euro may cut some import costs, it could also have a negative effect on exports as European-made goods become more expensive.
The US the Europe’s largest trading partner.
Sphere: Related ContentIt could also hurt growth in Asia, with the US being the largest market for China, Korea, and other Asian exporters.
Currency fluctuations such as we see between the U.S. and the euro and among all countries or monetary unions around the world are wasteful, risky, and unnecessary.
What is needed is a Single Global Currency, managed by a Global Central Bank within a Global Monetary Union. (See www.singleglobalcurrency.org)
If the euro can be used successfully by 13 nations, soon to be 15, and later 22 nations, why not move to a currency to be used by all 191 members of the United Nations for international transactions AND for internal transactions such as the payment of taxes. Led by the example of Europe, regional monetary unions are being created and expanded around the world. However, as good as such regional unions may be, they still exist in an expensive multi-currency world. Their benefits will be dwarfed by the benefits of a Single Global Currency.
The implementation of a Single Global Currency will save the world approximately $400 billion in foreign exchange transaction costs, and will eliminate currency crises and balance of payment problems and eliminate all the currency fluctuations which bedevil our globalizing world. Also, a Single Global Currency would increase the values of assets in countries where currency risk is presently high, and the citizens of those countries would be less likely to send their money to safer financial centers.
The goal of the Single Global Currency Assn. is a Single Global Currency by the year 2025, which is only 17 years away. Daunting as that goal may seem, please remember that in 1985, when the euro was still 17 years away from the pockets of Europeans, the prospects for ever abandoning the deutschmark, franc and guilder were low. Also, the Berlin wall was still standing and the Soviet Union loomed large.
We need to start researching and planning now for a Single Global Currency to be managed by a Global Central Bank within a Global Monetary Union.
Comment by Morrison Bonpasse — Friday, September 21, 2025 @ 6:47 am