Dollar’s rise will continue as eurozone ignores structural change

New legislation on the minimum wage and early retirement in Germany have sent out bad signals (photo: dpa)
New legislation on the minimum wage and early retirement in Germany have sent out bad signals (photo: dpa)

How far can the dollar appreciate in value is a conundrum tickling the minds of investors. The dollar’s rise and the euro’s fall reflect respective growth in America and Europe and the underlying problem of the eurozone’s failure to tackle irresponsible governments, reforms and taxes.

<i>The value of the dollar has significantly appreciated against all the major currencies since early May 2014, and especially against the euro. Many experts predict that the rise will continue and the dollar-euro exchange rate could reach 1.20 or 1.10 soon. We argue that the keys to the dollar-exchange rate are the strength of the American recovery, Germany’s weakness, and the ambiguities of the E...

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