The public debt crisis in the eurozone has provoked much gnashing of teeth. There is indeed a lot to wail about. But there is no reason to despair over the stability of the common currency itself. For those who cannot bring themselves simply to ignore the euro's fall – steep though it has been in recent weeks – the most sensible alternative is to welcome it.
As the London markets closed on Friday, the euro was trading at $1.24, touching an 18-month low against the dollar. It was similarly weak against sterling, at £0.85, and the yen, at ¥165. On a trade-weighted basis, the euro is down 5 per cent in the last month and 11 per cent since six months ago.
There is no shortage of reasons for the euro's lack of popularity. Lacklustre first-quarter growth figures were released this week. The still-simmering possibility of previously unthinkable defaults by west European states continues to foment uncertainty. Investors, wary of the unknown, are moving out of euro-denominated assets. The extraordinary decision by the European Central Bank to purchase government bonds raises the spectre of inflation. And like all financial markets, foreign exchange trading feeds on itself: a belief that the euro will fall is enough to make it happen.