In a period of low inflation, the effects of exchange rate developments are closely monitored. What should be done to weaken the euro further? Another reason why the euro is at this level vis-à-vis the US dollar is that the euro area has recorded large and growing current account surpluses – [Editor’s note: forecast at € billion for 2014]. This is new.
A further advantage is that the euro has supported the completion of the Single Market and has removed the risk of fluctuation between the currencies of those EU Member States that now belong to the euro area.