Britain, on the other hand, still keeping the euro out, has an export problem because of the expensive pound versus the euro. Economists have pointed out as well that the euro would have been very strong versus the U.S. dollar if it already had existed in 1995. The single European currency would have peaked at nearly 1.37 dollar in 1995 if it had existed then. That is over 15 percent more than in 1999 when the euro was introduced. But ten years earlier, in 1985, it would have been even weaker than it is today at nearly 0.715.
Currencies do fluctuate.
But not any longer within the eurozone. On the broader scale it looks like the euro may be catching up versus the US dollar. The earlier weakness can be explained by the extraordinary growth of the U.S. economy, which was overshadowing expansion in Europe. Higher interest rates in the U.S. compared to Europe also helped the dollar up versus the euro. But things are changing.