The Financial Times reported today that the euro was becoming the choice of currency in the face of a weak dollar.

Despite earlier rallies, the value of the dollar continues to fall, and there are concerns at central banks that converting USD back to local currencies will incur real losses.

Added to that, the euro as a currency has moved from strngth to strength, so any moves towards further euro speculation are a continuation of practice, rather than a sudden new move. Many banks for nations built on oil exports have been moving away from the devalued US dollar for the past three years.

The general rise in the strnegth of the euro should not be seen as nothing but an indicator of lack of faith in the USD, but instead as a growing vote of confidence in a currency used by 12 European nations.

Tags: European Stocks & Shares News, European Economy News //