Strong Euro worries for exporters

The current exchange rate between the Europe wide currency the Euro against the US dollar was €1.0=US$1.15 on May 14. The Euro was the weaker of the two currencies a year earlier and in May 2002 the exchange rate was €1.1=US$1.0. The European currency has strengthened around 25% against the dollar making European exports less attractive. Following a quiet Lineapelle show in Italy last week, reports from Europe continue to be pessimistic. Both European tanners and traders comment that the Euro must come down closer to the level of the US dollar in order to be competitive, particularly in Asian markets. In a report seen by Leather International similar currency issues have also occurred with traders selling Australian hides and skins. The A$1 was worth US$0.64 as of May 14.