Here it is important to distinguish between two separate issues: the market shares which the euro has captured as an investment and reserve currency and the movements in the euro’s exchange rate. While it is true that the euro is a new currency, it was able to benefit from the world-wide acceptance of mainly the DM.
This is especially evident in the size of its market shares. The euro is the second most important international investment and reserve currency, after the dollar, and its market shares far exceed those of the yen. Around one-quarter of cross-border bank positions are denominated in euro.