The Euro Has Lost Value Since Its Inception

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The Euro Has Lost Value Since Its Inception

• The standard explanation is that investors have
  confidence that the Fed will strike the proper
  balance between price stability and economic
  growth.
• An alternative theory is that the dollar is a
  safe haven whenever investors become more
  risk-averse, they pile into dollars. And
  uncertainty has certainly grown.
• The last theory is, of course, that the euro is
  undervalued, and will recover soon.