And this is what has happened to the euro recently, giving rise to a heightened awareness among currency economists that it may finally have found its own strength.
The EUR/USD pair surged to a 10-month high of 0.9552, notwithstanding the rally of US stocks.
The Dow Jones has dipped to an 18 October low of 9975 points, but has pulled itself up to10,525 last Friday. This strength in the stock market should have ignited the US dollar, as it actually did, when the dollar overpowered the Asian currencies.
Yet, during the same period, the euro has actually inched up against the mighty dollar, not to mention the yen. The EUR/JPY pair hit a 10-month high of 112.4.
According to DBS Bank's latest currency research report, the market is "probably pricing in" the fact that the euro is getting stronger on its own merits rather than relying on the weakness of the dollar.
