- Title: GERMANY: EURO PUSHES THROUGH HISTORIC ONE-TO-ONE BARRIER AGAINST DOLLAR.
- Date: 15th July 2002
- Summary: FRANKFURT, GERMANY (JULY 15, 2002) (REUTERS) 1. GV/CU: EXTERIORS EUROPEAN CENTRAL BANK (ECB) HEADQUARTERS IN FRANKFURT; SCU EURO LOGO OUTSIDE (4 SHOTS) 0.33 2. GV: COMMERZBANK SEEN IN BACKGROUND 0.39 3. MV: SOUNDBITE (German) JUERGEN PFISTER, HEAD OF ECONOMIC RESEARCH AT COMMERZBANK SAYING "What worries us is the speed with which these changes are happening. There is a danger of a further upgrading which would make companies uncertain. They would postpone investments because they can no longer count on profitable exports." 1.15 4. GV: EURO/DOLLAR PARITY ON ELECTRONIC BOARD 1.28 5. VARIOUS: COMMERZBANK TRADERS ON PHONES IN TRADING ROOM; VARIOUS OF TRADING/TRADERS; PAN ACROSS BOARD SHOWING EURO-DOLLAR PARITY; TRADERS (6 SHOTS) 2.13 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 30th July 2002 13:00
- Keywords:
- Location: FRANKFURT, GERMANY
- Country: Germany
- Reuters ID: LVA9BMDI33P4LWJ07I1IZ6U2SYD6
- Story Text: One euro bought as much as one dollar for the first
time since February 2000, rising past the parity milestone in
a dramatic turnaround in fortunes for the youthful single
currency.
The euro's push through the symbolic one-to-one barrier on
Monday (July 15, 2002) was cheered on some trading floors and comes
only days after euro zone policymakers issued one of the
strongest statements in support of the euro since it was
launched amid great fanfare on January 1, 1999.
The euro, which had once sunk 30 percent below its January
1999 launch rate, has risen six percent in just a month as the
greenback has been battered by a succession of U.S. corporate
accounting scandals.
But the rise in the euro did not please everybody in
Europe, some analysts believe the rise could make life very
difficult for exporters sending goods outside the euro zone
who rely on a weak euro.
"What worries us is the speed with which these changes are
happening. There is a danger of a further upgrading which
would make companies uncertain. They would postpone
investments because they can no longer count on profitable
exports", the head of economic research at Commerzbank told
Reuters.
The euro, which began life at $1.1747, first breached the
$1.00 floor in December 1999, prompting jeers from those who
insisted that monetary union would never work.
- Copyright Holder: REUTERS
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