Euro (€)
The euro was created to encompass the geographic areas once the purview of the mighty German Deutsche mark, French franc, etc. The transition to the euro went more smoothly than most expected. However, the euro has not yet stimulated economic growth there. Growth lags the United States as structural problems continue to plague investors doing business there. Although the euro rose at a rapid pace, it recently has been staying within a relatively narrow range. Economic fundamentals remain stronger in the United States, but investors are wary of the escalating twin deficits (current account and fiscal). Investors' heightened interest in interest rate spreads means that the currency fluctuates on projected interest rate moves.