by Frank Shostak
Mises.org
At the end of March the price of the euro in terms of US dollars closed at 1.1378. This was an increase of 4.7 percent from February when it increased by 0.3 percent. The yearly growth rate of the price of the euro in US dollar terms jumped to 6 percent in March from minus 2.9 percent in February.
What Determines a Currency’s Value?
According to most experts currency rates of exchange appear to be moving in response to so many factors that it makes it almost impossible to ascertain where the rate of exchange is likely to be headed.
Rather than paying attention to the multitude of factors, though, it is more sensible to focus on the essential variable.