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Dublin: 3°C Sunday 27 September 2020
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It's not the best time to order stuff from America...

Something big happened today…

Image: Shutterstock/Andrey_Popov

THE VALUE OF the euro versus the US dollar has sunk to its lowest level in 11 years, closing at just $1.137 this evening.

The slump is an obvious side effect of the ECB’s announcement regarding its €1 trillion programme of quantitative easing.

With so much new cash sloshing around the EU in an attempt to kickstart the eurozone economy, an inevitable reaction was the reduction in value of the common currency.

rsz_1rsz_usd_eur Source: XE.com

It’s probably not the best time to be ordering online from US websites then.

The upside to the fall is that a weaker currency should make European exports cheaper and more competitive, thereby boosting inflation.

Germany European Central Bank Source: Michael Probst

At least that’s the theory. Analysts the world over will now wait with bated breath to see just how effective Mario Draghi’s big move will prove to be.

In the meantime…

Good luck getting that out of your head.

Read: The ECB’s “extreme” anti-deflation measures could now be worth €1 trillion

Read: Explainer: Why the ECB will be pulling euro out of thin air… and what it means for you

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