The Euro Exchange Rate may be defined as the worth of the Euro in comparison to other currencies, or the measure of the quantity of Euro that would be required to buy an unit of the currency in question.
Euro, the common currency of the countries belonging to the European Union, was adopted in 1999. All the countries which are the members of the European Union have adopted the Euro since its inception in 1999.
Countries such as Denmark which is still using its Danish Krone, Sweden where the Swedish Krona is in circulation as yet, and the United Kingdom with its Pound Sterling, have opted to stay out of the European Union, and so are subjected to the Euro Exchange Rate during the respective conversion of the currencies of these nations into Euro.
According to the latest reports received in August, 2007, the Euro Exchange Rate per unit Euro against the major currencies of the world is close to the following currency exchange rates given below :
- American Dollar – 1.3711
- British Pound – 0.673297
- Canadian Dollar – 1.46104
- Japanese Yen – 163.339
- Swedish Krona – 9.20653
According to the Euro Exchange Rate, the relative value of the Euro has always been worth more than the US Dollar, and below the Pound Sterling of the United Kingdom. Therefore, the exports from the U.S. into the member countries of the European Union have, as a rule, remained affordable throughout.
Whereas, the United Kingdom has benefited from the lower value of the Euro in comparison with the British Pound Sterling. The Euro Exchange Rate has in fact assisted the respective national currencies of the member countries by enhancing the effective worth of the commodities and services provided by them, by raising the relative value of the currencies that the European countries had prior to the adoption of the Euro in 1999.