With the euro's appearance in the world market, the competition between euro and dollar has become a hot-button issue …. The author focuses on the movements of the euro/dollar exchange rate and probes into the determinants of its exchange rate …

of the 25 sampled floating currencies, excluding the US dollar and euro, there has been a noticeable decrease in the … ratio of a currency’s distance from the euro to its distance from the dollar during the period from 1999 to 2013. Evidence … that exchange risk has increased substantially is also found for dollar-based agents, while it has decreased for euro …