By contrast, “euro sceptics” drew attention to the fact that it needs a long time before a new and untried currency is accepted as an investment, reserve and transaction currency. BIS Review 130/1999  5  As a matter of fact, the euro made a promising start in the foreign exchange markets, with a rate against the dollar of 1.18.
But the exchange rate soon began to edge down, reaching an all-time low, at 1.0124, on 12 July. The main reasons for this depreciation were no doubt the astonishing resilience of US business activity and the associated distinct interest-rate advantage of the United States.