| The European Central Bank has a weaker euro in its sights, and is finally getting its way. But that could have consequences elsewhere—particularly in Eastern Europe. The euro has now fallen 9% against the dollar since its May peak and is near its lowest in two years. It could well have further to go.
The ECB has chosen to go on the attack in seeking to boost the size of its balance sheet, just as the U.S. Federal Reserve wraps up its bond purchases and begins to confront the need to raise interest rates. The U.S. and eurozone economies are diverging, as are government-bond yields. But the euro is only roughly in the middle of its range in recent years at $1.28. It has previously been far weaker than this...............................................Full Article: Source
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