Synopsis:
This article explains why the value of the dollar is still high against the euro. One of the reasons
may be related to the dollar's traditional role as a safe-haven currency especially in an uncertain global economic climate. Another reason may stem from the relative productivity growth rates.
The current economic slowdown in the U.S. may reduce the productivity gap between the U.S.
and the euro area. In the long run, however, the productivity growth is expected to remain faster
in the U.S, which may keep the strength of the dollar against the euro.

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