Therefore, the directional indication of a chart corresponds to the base currency. Using the earlier example, when a trader takes a long position in the EUR/USD currency at 1.50, as the rate increases to 1.70, the euro increases in strength (as indicated in the price chart) and the U.S. dollar weakens. Now it takes $1.70 (more dollars) to purchase the same euro, making the dollar weaker and/or the euro stronger. The euro currency originated on 1992 as a result of the Maastricht Treaty. On Jan. 1, 2002, the euro began circulating in member countries of the EU, and over the course of several years, it became the accepted currency of the European Union and ultimately replaced the currencies of many of its members. Consequently, the euro integrates and represents a large number of European economies.

For local phonetics, cent, use of plural and amount formatting (€6,00 or 6.00 €), see Language and the euro. In general, those in Europe who own large amounts of euro are served by high stability and low inflation. Outside the eurozone, two EU member states have currencies that are pegged to the euro, which is a precondition to joining the eurozone. The Danish krone and Bulgarian lev are pegged due to their participation in the ERM II. EU members Czech Republic, Hungary, Poland, and Sweden are legally obligated to adopt the euro eventually, though they have no required date for adoption, and their governments do not currently have any plans for switching.

Our smart tech means we’re more efficient – which means you get a great rate. Banks and traditional providers often have extra costs, which they pass to you by marking up the exchange rate. EUR/USD currency pair represents the euro fundamentals of web application development versus the U.S. dollar and is different than most others because the dollar is the denominator or quote currency. Other currency pairs involving the U.S. dollar typically include the dollar as the numerator or base currency.

1. Now it takes $1.70 (more dollars) to purchase the same euro, making the dollar weaker and/or the euro stronger.
2. The result is that seen from those countries, the euro has become expensive, making European products increasingly expensive for its largest importers; hence export from the eurozone becomes more difficult.
3. The definitive values of one euro in terms of the exchange rates at which the currency entered the euro are shown in the table.

As a result, when the dollar strengthens against the euro, EUR/USD moves lower, and during periods of dollar weakness (vs. the euro), the pair increases in value. For example, the central bank of a country experiencing an economic slowdown can no longer cut interest rates, devaluing a national currency against that of its major European trading partners to stimulate exports. The euro is the sole legal tender in the EU member states that have adopted it, https://traderoom.info/ including Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. These countries form the eurozone, a region where the euro serves as the common currency. Four small non-EU nations (Andorra, Vatican City, San Marino, and Monaco) also use the euro as their official currency and several countries have currencies pegged to the euro.

Xe Rate Alerts

The ECB targets interest rates rather than exchange rates and in general, does not intervene on the foreign exchange rate markets. This is because of the implications of the Mundell–Fleming model, which implies a central bank cannot (without capital controls) maintain interest rate and exchange rate targets simultaneously, because increasing the money supply results in a depreciation of the currency. In the years following the Single European Act, the EU has liberalised its capital markets and, as the ECB has inflation targeting as its monetary policy, the exchange-rate regime of the euro is floating. The changeover period during which the former currencies’ notes and coins were exchanged for those of the euro lasted about two months, until 28 February 2002.

00000 EUR = 1.08805 USD

However, in order to do this, you need to know the current exchange rate. In the absence of a specific agreement concerning the means of payment, creditors are obliged to accept payment in euros. Check live rates, send money securely, set rate alerts, receive notifications and more. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. These percentages show how much the exchange rate has fluctuated over the last 30 and 90-day periods. The 1992 Maastricht Treaty obliges most EU member states to adopt the euro upon meeting certain monetary and budgetary convergence criteria, although not all participating states have done so.

The US Commodity Futures Trading Commission’s weekly Commitments of Traders (COT) reports on the major futures market participants offer insight for those with frequently longer duration intention. For this reason, the interest rate differential between the European Central Bank (ECB) and the Federal Reserve (Fed) affects the value of these currencies when compared to each other. The symbol € is based on the Greek letter epsilon (Є), with the first letter in the word “Europe” and with 2 parallel lines signifying stability.

How to Convert Euros to U.S. Dollars

He noted that consistent advancements in inflation are uncertain and hinted at the possibility of initiating rate reductions at some point this year. Powell underscored the tightness of the labour market while also recognizing the potential adverse impact on the economy if the policy rate reduction is delayed. He emphasized that decisions will be made on a meeting-by-meeting basis, expressing the belief that the policy rate has likely reached its peak and suggesting at the same time that a rate cut in March looked unlikely. The European Commission and the European Central Bank jointly decide whether the conditions are met for euro area candidate countries to adopt the euro.

It is the second-most traded currency on the forex market, after the US Dollar, and also a major global reserve currency. Other common names for the Euro include Yoyo (Irish English), Leru (Spanish), and Ege (Finnish). While increased liquidity may lower the nominal interest rate on the bond, denominating the bond in a currency with low levels of inflation arguably plays a much larger role.

Coins have a standard image on one side, and on the other have a design related to the country of issue. Currently euro coins and notes are accepted anywhere in the Eurozone, regardless of the country of issue. Using a currency conversion calculator is often the easiest way to get an estimate when you’re converting currency.

Choose your currencies

The coins also have a national side showing an image specifically chosen by the country that issued the coin. Euro coins from any member state may be freely used in any nation that has adopted the euro. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances.

Keep in mind that exchanging currency often comes with added fees that a conversion calculator won’t be able to predict. For instance, credit card companies and ATM networks usually charge a 1% conversion fee on all foreign transactions. Individual merchants may also charge supplemental fees if you ask them to convert the price of an item to your home currency at checkout. These are the lowest points the exchange rate has been at in the last 30 and 90-day periods.