CHRONOLOGY-Milestones in euro’s history since 1999

LONDON, May 10 (BestGrowthStock) – The euro rallied from last week’s
14-month low against the dollar on Monday after policymakers
agreed a $1 trillion emergency package to stabilise the currency
and euro zone central banks began buying government debt.

The aid package, hammered out by European Union finance
ministers, central bankers and the International Monetary Fund,
was the biggest since Group of 20 leaders rolled out support
measures after the collapse of Lehman Brothers in 2008.

The plan calmed investor nerves after contagion fears
triggered a global rout in equities and other risky assets last
week, leading to a broad rally in the euro and equities.

Concerns about the fiscal health of Greece and other euro
zone countries, especially Spain and Portugal, pushed the euro’s
losses since the beginning of 2010 to 14 percent at one point.
Even after Monday’s rally, the outlook for the euro remains
fragile. Greece must adopt a package of austerity measures, such
as increasing taxes and cutting public sector pay, which has
caused public outcry in the capital Athens.

Protests turned violent last week, with three people killed
when demonstrators set fire to a bank in the city.

For an analysis of the outlook for the euro, click

Following is a snapshot of the euro’s performance against
the U.S. dollar since its launch in January 1999:

* May 10, 2010 – Euro rallies more than 2 percent at one
point from the previous week’s 14-month low after policymakers
hammer out a $1 trillion emergency package and bond buying by
euro zone central banks. Euro on track for its biggest one-day
gain since November 2008 against the dollar.

* May 6, 2010 – Euro falls to a 14-month low of $1.2510 as
risks of contagion from the Greek debt crisis rock markets. Euro
falls 10 yen on the day from 120 yen to 110 as U.S. stocks (Read more about the stock market today. ) drop
close to 10 percent, though traders attribute the severity of
the move in equities to a technical glitch.

* May 3, 2010 – Euro falls, erasing initial gains made after
European countries agreed to a 110 billion euro aid package for
Greece over the weekend, on uncertainty over how it would be
activated. Euro ends down around 1 percent at $1.3190.

* April 27, 2010 – Euro falls more than 1.5 percent after
Standard and Poor’s slashed Greek debt to junk status and
downgraded Portugal.

* Feb 4, 2010 – The euro sinks to a more than eight-month
low against the dollar and a nearly one-year trough against the
yen amid concerns over the fiscal health of debt-laden euro zone
economies such as Greece, Portugal and Spain. It was the worst
day for the euro against the yen since November 2008.

* Dec 8, 2009 – Euro hits one-month low vs dollar of $1.4679
as Standard and Poor’s downgrades Greece to BBB+ from A- with a
negative outlook, the first time in 10 years a major ratings
agency has put the country below an A grade.

* Nov 25, 2009 – Euro rallies to 2009 high of $1.5144 in
thin pre-Thanksgiving trade as upbeat U.S. data on weekly
jobless claims, consumer spending and new home sales boost risk
appetite. The dollar also slips to a fresh 15-month low versus a
currency basket after Federal Reserve minutes affirmed
expectations of low U.S. interest rates until around mid-2010.

* March 18, 2009 – Euro jumps 3.9 percent versus dollar,
according to Reuters data, the biggest 1-day percentage gain
since the euro’s launch in 1999, as the Federal Reserve catches
markets off guard by saying it would buy $300 billion of
long-dated Treasuries to boost the economy.

* Dec 19, 2008 – Euro rises after the U.S. Federal Reserve
cut interest rates to zero to 0.25 percent, the lowest on
record. Euro hits near three-month high of $1.4719.

* September/October 2008 – The subprime crisis escalates in
the United States as the government takes control of troubled
mortgage finance giants Fannie Mae and Freddie Mac. Lehman
Brothers files for bankruptcy, while the government bails out
insurer AIG. Investors flock to safe-haven status of dollar and
yen. Euro/dollar drops from a high of $1.4825 on September 22 to
a low of $1.2328 on October 28.

* April 22, 2008 – Euro scales $1.60 for the first time to
trade as high as $1.6018, according to Reuters data,
representing a near doubling in its value against the dollar
from its low of $0.8225 struck in October, 2000.

* March 12, 2008 – Euro rises above $1.55 after
stronger-than-expected euro zone industrial production data
bolsters the view the ECB will resist following the U.S. Federal
Reserve’s lead in cutting interest rates to protect the economy
from the ongoing credit crisis.

* Feb 27, 2008 – Euro trades above the psychological $1.50
barrier, after Fed Chairman Ben Bernanke signalled the central
bank was ready to cut rates again in the face of mounting risks
to economic growth. The Fed had already slashed its key Fed
funds target rate by 225 basis points to 3 percent since
mid-September in a bid to stem the economic impact form the
global credit crisis.

* Oct 31, 2007 – Euro climbs above $1.45, for the first
time, on the day the U.S. Federal Reserve ended a two-day policy
meeting with a 25 basis point cut in its key interest rate to
4.50 percent. The Fed’s cut was smaller than many analysts had
expected, but fuelled expectations of more easing in the
meetings ahead and narrowed further the dollar’s yield advantage
over the euro to only half a percentage point.

* Oct 18, 2007 – Euro climbs above $1.43 for the first time
ever to as high as $1.4310, according to Reuters data, as the
dollar sags across the board on the back of Bank of America’s
earnings and weekly U.S. jobless claims data.


CHRONOLOGY-Milestones in euro’s history since 1999