Exporters burdened by strong euro but will adjust
The euro, Europe's common currency soared to record highs on Wednesday nearly exceeding one dollar twenty before settling down to just over a dollar nineteen in late trading.
The currency's new-found vigour is spreading dismay among European businesses and industry, because the eurozone economy is already sluggish and needs outside stimulus to get moving again.
For export-dependent countries like Germany and France, there is the worry that a strong euro could hamper efforts to rein in budget deficits that are already over-extended. So how serious a problem is a strong euro? Greg Benzow put that question to Martin Hüfner, chief economist at Germany’s HypoVereinsbank in Munich.