The Euro is the currency used by the institutions of the European Union and is officially the currency of the euro zone. The euro zone consists of 17 of the 27 member states. There are quite a lump sum amount of Euros circulating right now. It is approximately EUR610 billion that is about 800 USD. The Euro rate is the current value and rate of exchange of the currency. If you are a business person or just one to travel, it is important to know the Euro rate when dealing financially in Europe.

Over 300 million Europeans use the Euro; hence it is very important to know the rate of exchange so that you can do business with those that handle the currency. The value of the Euros is greater than the dollar rate. This means that the US dollar converts at 69 Euros. Since the Euro is that strong it ultimately affects a very big part of the foreign exchange or forex, market. As a matter of fact, the euro is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar.

The economy of those 17 countries serves as the main basis of the euro rate of exchange. The exchange rates have remained relatively stable though, against the pound today. This has occurred as traders and investors are still waiting to overcome the US ‘Fiscal Cliff”. The Euros exchange rates have been rallying of late. This is bringing the levels close to six months highs against the pound and the dollar.

Knowing the rate of exchange of this currency is very important if you are especially interest in investing in the foreign exchange market. This is the single most persistent market in the world and it exists anywhere that people can exchange money. Knowing the rates of the Euros, you will be able to buy and sell things from other countries and even save money while at it.

If you don’t know how this exchange rate is being calculated, then there are two methods of doing this. The first method is the fixed rate. The fixed rate is being set and maintained by a country’s central bank and this way it is made the official exchange rate for that certain currency. The other method for setting the exchange rate for a currency is called the ‘floating’ method. This method determines the exchange rate by using supply and demand balance for that currency on the market. This exchange rate is sometimes called ‘self correcting’. In some instances if the currency value moves in any one direction at a rapid and constant rate, the country’s central bank will intervene by buying and selling its own cash reserves in the foreign exchange market so that it can stabilize the local currency.

On the history of the euro, the central bank in Europe is called the European central bank and since the 2011, 17 EU member states all have adopted this currency.

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