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Head of European Commission Calls Weak Dollar Problem of World Economy

Business Materials 27 November 2007 18:21 (UTC +04:00)
Head of European Commission Calls Weak Dollar Problem of World Economy

Azerbaijan, Baku / Trend / The head of the European Commission Jose Manuel Barroso called the weak dollar a problem of world economy and said the strengthening of the euro reflects an increasing confidence in the economy of Europe, AFP reported.

On the evening of 26 November, the dollar was 1.4865 against the euro at international markets, and in the morning of the same day it was 1.4831, which is almost a cent less than it was on the morning of 23 November.

The weakening of USD caused oil to be more expensive. On 26 November it was the second time when one barrel cost $99, Associated Press reported. January contract for oil supply increased by 13 cents to $99.11 on the NYMEX commodity exchange in New-York.

As it was reported on 21 November, two financial records were broken in world financial markets. The dollar dropped to its historical minimum making up less than $1.48 against the euro and oil prices hiked to almost $100.

On 23 November it was reported that the weakening of the dollar put the existence of Airbus under threat. Director General Tom Enders said that the company would probably cut the amount of planned investments and its staff due to the situation in the currency market.

The Union of European entrepreneurs Business Europe including 20mln companies opposes the strengthening of the euro. An expensive euro prevents exporters from goods profitably.

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