The euro is tumbling.
A lot of people paid attention to the euro sinking against the dollar in 2014: It dropped by about 14%, and it’s now hovering near 11-year lows.
But on a trade-weighted basis (compared to the basket of currencies that its trading partners use) the fall was much more modest: It dropped just 5.02% in the whole of 2014.
The decline in just the last three weeks has been steeper: The euro dropped 6.03% on a trade weighted basis since the beginning of 2015.
A lot of European politicians have been complaining about the strength of the euro: Italian Prime Minister Matteo Renzi said he wants it to reach parity with the dollar. But thanks to central banks in Bern and Frankfurt, the euro is weakening at a rapid pace.