Top 2 Money Transfer Providers for USA to France

Between 1999, when the euro was initially adopted and used in electronic transactions only, and 2002, when the euro officially launched as a hard currency, USD to EUR forex transactions traded in a tight range, almost near parity at some points. However, between 2002 and 2008, the dollar lost 37% of its value against the euro as the European economy surged and, later, the subprime mortgage crisis hit in the US. Forex markets were destabilised and investors lost confidence in the US market, many of whom began heading to the euro instead of the dollar. The dollar’s value against the euro plummeted to its lowest point at the beginning of 2008, when the USD was worth €0.526. Once the 2008 subprime mortgage recession began to spread globally and investors could see that the eurozone would also be heavily affected, the euro’s value began to sink against the dollar, with the dollar-euro conversion rate climbing back up to €0.608.

Global recession fears continued throughout 2009. Although the US had begun to pursue more aggressive policies to combat its weakened economy, in the first quarter of 2009 the ECB increased its prime rate to 1.5%, causing the euro to decline and the dollar to gain value in comparison. However, the ECB made moves to lower the rate later in the year, correctly assessing that investor confidence had been shaken by the drop in rates. With investors also noting an increase in public and private debt in the United States, the dollar once again fell in value against the euro, ending the year with a conversion rate stuck at €0.567.

Throughout 2010 and into 2011, the fears of a weakening EU economy and a stronger US market caused the dollar to once again gain against the euro. The dollar’s rise was interrupted by periodic falls against the euro, as the ECB took measures to stabilize the eurozone. By December 2011 the USD to EUR conversion rate has climbed to €0.67.

By 2012, the economic downturn was firmly ingrained in the eurozone, weighed down by a handful of economies that were more prone to rising public debt. Stagnant growth, combined with the looming threat of deflation, further weakened the euro against the dollar. The crisis eased somewhat by the end of 2012, and the euro began to stabilise in response. However, the dollar’s value was still higher than it had been at the same time the previous year, finishing at €0.681.

Since 2013, continued economic weakness in the eurozone, political instability in Ukraine, and the most recent Greek debt crisis have further eroded the euro’s value against the dollar. The American economy, meanwhile, continues to improve. In 2014 economic output began to surge ahead, as consumer confidence increased and the employment rate ticked up. In 2015, the dollar’s value was at an 11-year high against the euro, and most forecasts predict that this rise will continue throughout the year.