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Euro Dives Under US$0.90 Psychological Border

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BRUSSELS, Belgium — Today the euro continued its plunge, this time dropping under the psychological US$0.90 border. The most recent turn for the worse is due to disappointing German unemployment numbers and the high productivity statistics turned in by America. The US Ministry of Labor recently announced that national productivity increased considerably in the first […]

BRUSSELS, Belgium — Today the euro continued its plunge, this time dropping under the psychological US$0.90 border. The most recent turn for the worse is due to disappointing German unemployment numbers and the high productivity statistics turned in by America. The US Ministry of Labor recently announced that national productivity increased considerably in the first half of 2000. In fact, it was the largest growth posted in the 17 years. At the same time, US labor costs dropped slightly, making the US a very attractive economy for foreign investors. For that they need dollars, which is driving up the rate against the euro. The number of German unemployed only dropped by 9,000 in the first half of the year, far below the expected 20,000. This also affected the euro, though only slightly, as it is a sign to many that the European economy is lagging behind that of the US. (JW)

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