chapter  2
Seven Years with the Euro
ByJoaquín Almunia
Pages 6

Since the birth of the euro in January 1999, the euro-dollar exchange rate has seen some marked gyrations. The rst three years of the single currency were characterized by euro depreciation, with the value of the euro falling from about US$1.17 to below 83 cents at its lowest point in October 2000. Starting in early 2002, the euro then recovered and peaked at slightly above US$1.36 in late 2004, before falling back somewhat during 2005. Since early 2006, the euro has started strengthening again, to historical heights – over US$1.36.