[DB]

Low US interest rates mean low return on holding US currency.

The EU has high interest rates in spite of going into recession. Double whammy on the EU...

[elfman2]

" Low US interest rates mean low return on holding US currency. "

Excuse my ignorance, but why? When one buys a currency, do they indirectly buy that nations loans? Intuitively, I'd think that the currency price would be more directly related to that nation's economic prospects and currency risk.