why does USD keeps depreciates against EURO?”
Here is a good article discussing exchange rate fluctuations from People’s Daily Online: How far will the depreciation of US dollar continue to go? The year of 2004 was the third consecutive year for the depreciation of US dollar against the Euro-dollar. When entering 2005, the exchange rate of US dollar once showed a tendency of rise, however, it was still unstable. On 30 Dec. 2005, the rate of exchange of one Euro-dollar was equivalent to 1.3623 US dollar, telling the lowest level of the US dollar against Euro in history. The US dollar began to rise to one euro against USD 1.3122 in the latter 20 days of January 2005, and kept on rising to one euro against 1.2957 US dollars in the first 15 days of February. However, the US dollar devalued sharply on Feb. 22 to one euro against 1.3260 US dollars, the lowest point since last August. It is reported that there were many reasons accountable for the depreciation of US dollars: one was that the price of oil has climbed to USD 51 per barrel;
