Weakness of the dollar will impact tourism

FOR the first three years of the euro’s existence it struggled badly to establish its credentials. In hindsight at least this is not difficult to understand, as a currency experiment of this type was quite unprecedented in its scope.

A weak euro suited the struggling eurozone economy and gave a welcome boost to exports, which was really the only source of economic growth in the larger European economies during that period.

On the other hand, the strength of the dollar reflected the relative strength of the US economy at that stage and reflected the sense of confidence engendered by the Clinton presidency.