Euro To Dollar Online
Euro to Dollar (EUR to USD) exchange rate is updated on-line. Also Dollar to Euro (USD to EUR) exchange rate is here. The chart shows the current Euro to Dollar rate and the latest trend. You are able to change time period on the chart (by default it is 15 minutes) and chart type (line, bars, candles, area) is changeable. Timeline uses New York's time. Dollar to Euro rate chart is available too - just click on the symbol 'Dollar to Euro' in the table.
How Euro exchange rate was changing.
Common European currency was introduced in 1999. Euro currency in cash entered into circulation 3 years later – in 2002. Before that, the non-cash Euro and German marks, French francs, and other European currencies in cash were in circulation simultaneously.
When introducing Euro in January, 1999, the European Central Bank fixed its exchange rate against the US Dollar as 1.1743 dollars for 1 Euro. Such relation to Dollar was formed by the Euro predecessor – European currency ECU. The name Euro seemed more harmonious to Europeans than ECU.
The exchange rate of Euro against Dollar mainly depends on the rate of return (interest rates) in these currencies.
1999-2001. Interest rates in Europe are lower – Euro exchange rate declines
Over the period 1999-2001, Euro exchange rate declined significantly against the US Dollar – by 30%, from 1.17 Dollar per 1 Euro in 1999 to just 0.82 Dollar per 1 Euro in 2001. That became the historical minimum of Euro rate to Dollar. The key reason for Euro to Dollar exchange rate decline was the difference in return on investments in assets denominated in Dollars and Euro. The interest rate of the US Federal Reserve (US Central Bank) amounted to 4.5-6.5% per annum during that period, and the European Central Bank rate fluctuated in the range of 2.6-4.5%. Thus, the rate of return was higher in Dollars by an average of 2%, which was materially important for Western investors. The demand for Dollars was higher than the demand for Euro, and consequently, the exchange rate of Euro was declining during that period against Dollar.
2002-2004 – Rates are higher in Europe – Euro exchange rate rises
In 2001, the USA started to lower their interest rate rapidly. Europe followed the US, but it was lowering the interest rate slower. By early 2002, the interest rate in the USA was reduced to 1.75% and in Europe to 2.79%. Return on investments in Euro became more profitable, and Euro exchange rate started to strengthen. By late 2004, Euro exchange rate increased by 60% from 0.84 to 1.36 Dollars per 1 Euro in just 3 years.
2005 – Rates are lower in Europe – Euro exchange rate declines.
Starting from mid 2004, the USA started to raise the interest rate, and, by early 2005, it exceeded the rate in Europe – 2.75-4.25% in USA against 2.4-2.6% in Europe. During 2006, Euro exchange rate declined by 12%, from 1.32 to 1.18.
2006-2008 – US Mortgage Crisis.
The signs of impending financial crisis in the USA began to be manifested in the segment of residential real estate as early as 2006. Financially disadvantaged citizens, who had contracted mortgage loans at low interest rate to purchase housing, were unable to repay their debts at higher rate. The rate of the US Federal Reserve, to which the most affordable mortgage loans with floating interest rate were attached, rocketed from 1-2% in 2002-2004 to over 5% in 2006. Thereby, the amount of loan repayments form many citizens increased by several times, which resulted in their massive default and, eventually, led to the crisis of the entire US financial sphere.
In 2007, the US banks, which invested their funds in mortgage market instruments most actively, found themselves on the verge of bankruptcy. Some banks, for instance, the largest Lehman Brothers, failed to cope with the situation and dropped out of the game. Some banks required financial assistance from the Government, including the largest funds crediting the purchase of housing.
The attractiveness of American assets in the eyes of investors sharply declined due to concerns over further instability. Euro Zone market seemed more stable and more attractive than the US market. Euro interest rate was growing and exceeded the American in mid 2007. The US Federal Reserve, in contrast, started to reduce the rate in 2008, and, by the end of that year, the rate was at its minimum of 0.25%. From 2006 to mid 2008, the exchange rate of Euro to Dollar increased from 1.18 to the record level of 1.57 Dollars per 1 Euro. The increase amounted to 32%.
In November, 2008, the US Federal Reserve launched its first program of the so-called “Quantitative easing” (QE1) to provide additional liquidity (tens of billions of Dollars) to American banks aimed at boosting the economy, which appeared in recession. However, in a large measure, the funds were spent on the stock market. US stock market began its rapid growth and started to attract new investments from around the world. American banks began to return their capitals to the country, which resulted in the urgent disposal of investments in the markets of developing countries.
On the other hand, until mid 2014, the rates in Euro remained higher than those in Dollars. The US Federal Reserve launched its Quantitative easing programs two more times - in 2010 and 2012.
Euro to Dollar exchange rate entered the period of high volatility (variability). Euro exchange rate was fluctuating in the range of 1.22-1.50. In early 2009, Euro exchange rate was at the level of 1.27, and at the end of that year – 1.50 Dollars per Euro. The debt problems of Greece and Cyprus contributed to the exchange rate instability. By mid 2010, Euro exchange rate fell to 1.22. In April 2011, Euro exchange rate again rocketed to 1.48. And again, by mid 2012, Euro exchange rate appeared at the level of 1.23 Dollars per 1 Euro. By mid 2014, Euro exchange rate was equal to 1.37.
Over all these years the European Central Bank has been consistently reducing its interest rate, and finally, in mid 2014, the Euro rate was lower than the Dollar rate. The rate amounted to 0.05% against the Dollar rate of 0.25%. Euro exchange rate started to decline rapidly, and in six months, by late 2014, it was reduced by 12%. The exchange rate was 1.21 Dollars per Euro.
In March, 2015, the European Central Bank launched its own program aimed at pumping money into the financial system of Europe (similar to American Quantitative easing). The expectations of pre-announced program were already putting pressure on Euro exchange rate since autumn 2014. Following its launch, investors shifted their attention to the potential start of the US interest rate growth. However, the Federal Reserve has so far postponed it until late 2015. The European Central bank rate is still lower than the US interest rate. By late March, Euro fell to the level of 1.04 Dollars per Euro, whereupon it was adjusted to the range of 1.09-1.16.
Euro To Dollar. Historical Data By Month For 2005-2015
EUR to USD in 2015.
The rate changed by -10.25% from 1.21 to 1.086 per year.Quarter 4. In December Euro to Dollar exchange rate traded in the range of 1.054 and 1.106. In the beginning of month the rate was at 1.057, at the end 1.086. The exchange rate changed by 2.74% for December. In November EUR to USD rate traded in the range of 1.056 and 1.105. The exchange rate started the month at 1.101 and ended at 1.056. For November the rate changed by -4.09%. In October Euro to Dollar exchange rate traded in the range of 1.089 and 1.15. In the beginning of month the rate was at 1.118, at the end 1.101. The exchange rate changed by -1.52% for October.
Quarter 3. In September EUR to USD rate traded in the range of 1.109 and 1.146. The exchange rate started the month at 1.121 and ended at 1.118. For September the rate changed by -0.27%. In August Euro to Dollar exchange rate traded in the range of 1.085 and 1.171. In the beginning of month the rate was at 1.097, at the end 1.121. The exchange rate changed by 2.19% for August. In July EUR to USD rate traded in the range of 1.081 and 1.122. The exchange rate started the month at 1.114 and ended at 1.099. For July the rate changed by -1.35%.
Quarter 2. In June Euro to Dollar exchange rate traded in the range of 1.089 and 1.144. In the beginning of month the rate was at 1.099, at the end 1.114. The exchange rate changed by 1.36% for June. In May EUR to USD rate traded in the range of 1.082 and 1.147. The exchange rate started the month at 1.122 and ended at 1.099. For May the rate changed by -2.05%. In April Euro to Dollar exchange rate traded in the range of 1.052 and 1.127. In the beginning of month the rate was at 1.073, at the end 1.122. The exchange rate changed by 4.57% for April.
Quarter 1. In March EUR to USD rate traded in the range of 1.046 and 1.124. The exchange rate started the month at 1.119 and ended at 1.073. For March the rate changed by -4.11%. In February Euro to Dollar exchange rate traded in the range of 1.118 and 1.153. In the beginning of month the rate was at 1.128, at the end 1.119. The exchange rate changed by -0.8% for February. In January EUR to USD rate traded in the range of 1.11 and 1.211. The exchange rate started the month at 1.21 and ended at 1.129. For January the rate changed by -6.69%.More EUR to USD history by month for 2005-2014.
Euro To Dollar. Historical Chart For 1985-2015