As the dollar price of a euro falls,

Question

Quizplus · Accepted Answer

A decrease in the dollar price of a euro means that the euro has depreciated, making European goods relatively less expensive for Canadians. This makes it more attractive for Canadians to purchase European goods, leading to an increase in demand for euros. However, as the supply of euros remains constant, the value of the euro will continue to decrease in order to maintain market equilibrium. As a result, European assets such as stocks and bonds may become more attractive to Canadian investors.

As the Dollar Price of a Euro Falls