What is the strongest currency v. the Euro?

[Mikeyboy]

My son asked me last night, "what is the strongest currency?"
And you know I couldn't think of an answer that made much sense. I said the US dollar but then he asked what its conversion rate was against the Euro (he lives in Spain) and he didn't seem all that impressed with the answer.
So what is the strongest currency against the Euro, rather than the internationally most important?


All this from a 12 year old. I don't know whether to be impressed at his interest or worry that he doesn't have more fun things to think about.

[davepoth]

Strictly speaking, probably the Swiss Franc, since it's backed by a lot of (Nazi?) gold. Inflation in Switzerland is about zero, which makes it effectively appreciating in value.

The problem you have is explaining the difference in the number of euros to the franc vs. how strong the currency is.

[neilski]

If you mean which has the strongest base currency vs every other currency it's the Kuwaiti Dinar.

Source: xe.com

[youngsyr]

The pound sterling must be pretty "strong"; I've been to quite a few countries and have only ever exchanged GBP for multiples of the GBP amount, never decimals. Was the same in Europe before the Euro.

[V88Dicky]

Daihatsu have recently anounced they will cease to sell cars in Europe from 2013.
Their reason being the strong Yen vs Euro, (and Europeans prefering diesels) apparantly.

[limpsfield]

Mikeyboy said:

My son asked me last night, "what is the strongest currency?"
And you know I couldn't think of an answer that made much sense. I said the US dollar but then he asked what its conversion rate was against the Euro (he lives in Spain) and he didn't seem all that impressed with the answer.
So what is the strongest currency against the Euro, rather than the internationally

I think you are getting your terminology confused. Do you mean which has performed the best over recent history or do you mean which currency buys the most euros?for example, a pound buys you e.g. A euro and 12 cents. That's not a big number. Xyz currency buys you twenty euros. That is a big number. But if xyz a year ago bought you fifty euros it is not particularly strong anymore.

Edited by limpsfield on Thursday 20th January 18:47

[Engineer1]

Also consider that xyz currency that buys 20 Euros could be a unit that isn't in general use, equivalent to the old pre-decimal pound, say a Kruger Rand or something similar.

[jbi]

The Pound?

Edited by jbi on Thursday 20th January 19:49

[Mikeyboy]

limpsfield said:

Mikeyboy said:

My son asked me last night, "what is the strongest currency?"
And you know I couldn't think of an answer that made much sense. I said the US dollar but then he asked what its conversion rate was against the Euro (he lives in Spain) and he didn't seem all that impressed with the answer.
So what is the strongest currency against the Euro, rather than the internationally

I think you are getting your terminology confused. Do you mean which has performed the best over recent history or do you mean which currency buys the most euros?for example, a pound buys you e.g. A euro and 12 cents. That's not a big number. Xyz currency buys you twenty euros. That is a big number. But if xyz a year ago bought you fifty euros it is not particularly strong anymore.

Edited by limpsfield on Thursday 20th January 18:47

Well for one thing the terminology comes from a 12 year old, and badly translated from Spanish into English so I'm working from that.

Also I mean neither of your examples. Currencies always trade up and down against one another, but some currencies are backed by a resource or economy that does not make the currency itself fluctuate much and that as a result the value of the currency is always "high" in comparison to the Euro or even the dollar. So from what I've read here so far the Swiss Franc does sound like a good bet for the answer.

[Bing o]

youngsyr said:

The pound sterling must be pretty "strong"; I've been to quite a few countries and have only ever exchanged GBP for multiples of the GBP amount, never decimals. Was the same in Europe before the Euro.

Which one are you, Gordon Brown or Ed Balls? Or do you have a bit of free time now, Mr Johnson?

[Scuffers]

currently, it's the Aussie $

[Bing o]

Scuffers said:

currently, it's the Aussie $

14th according to Wikipedia...

http://en.wikipedia.org/wiki/Strongest_Currency

[DavidHM]

Mikeyboy said:

limpsfield said:

Mikeyboy said:

My son asked me last night, "what is the strongest currency?"
And you know I couldn't think of an answer that made much sense. I said the US dollar but then he asked what its conversion rate was against the Euro (he lives in Spain) and he didn't seem all that impressed with the answer.
So what is the strongest currency against the Euro, rather than the internationally

I think you are getting your terminology confused. Do you mean which has performed the best over recent history or do you mean which currency buys the most euros?for example, a pound buys you e.g. A euro and 12 cents. That's not a big number. Xyz currency buys you twenty euros. That is a big number. But if xyz a year ago bought you fifty euros it is not particularly strong anymore.

Edited by limpsfield on Thursday 20th January 18:47

Well for one thing the terminology comes from a 12 year old, and badly translated from Spanish into English so I'm working from that.

Also I mean neither of your examples. Currencies always trade up and down against one another, but some currencies are backed by a resource or economy that does not make the currency itself fluctuate much and that as a result the value of the currency is always "high" in comparison to the Euro or even the dollar. So from what I've read here so far the Swiss Franc does sound like a good bet for the answer.

In that case it sounds like you are trying to say what has maintained the greatest PPP value over time? I don't think your question strictly makes sense because people talk about strong and weak as relative values over time. On current prices, Norway and Sweden are top of the Big Mac Index and Switzerland is third.

http://en.wikipedia.org/wiki/Big_Mac_Index

[wolves_wanderer]

Bing o said:

Scuffers said:

currently, it's the Aussie $

14th according to Wikipedia...

http://en.wikipedia.org/wiki/Strongest_Currency

In terms of its value maybe, but then the Latvian Lat is worth more than £1 - would you say that is a stronger currency than the pound/euro/dollar.

The Australian dollar is trading at all-time highs, and has recently gone above parity with the USD. I would define strength as appreciation in value against other currencies, therefore the aussie dollar is the strongest IMO.

[ringram]

The Swiss Frank or whatever has also risen strongly. Its pretty flat against the AUD over the last year or so.

[Mikeyboy]

DavidHM said:

Mikeyboy said:

limpsfield said:

Mikeyboy said:

My son asked me last night, "what is the strongest currency?"
And you know I couldn't think of an answer that made much sense. I said the US dollar but then he asked what its conversion rate was against the Euro (he lives in Spain) and he didn't seem all that impressed with the answer.
So what is the strongest currency against the Euro, rather than the internationally

I think you are getting your terminology confused. Do you mean which has performed the best over recent history or do you mean which currency buys the most euros?for example, a pound buys you e.g. A euro and 12 cents. That's not a big number. Xyz currency buys you twenty euros. That is a big number. But if xyz a year ago bought you fifty euros it is not particularly strong anymore.

Edited by limpsfield on Thursday 20th January 18:47

Well for one thing the terminology comes from a 12 year old, and badly translated from Spanish into English so I'm working from that.

Also I mean neither of your examples. Currencies always trade up and down against one another, but some currencies are backed by a resource or economy that does not make the currency itself fluctuate much and that as a result the value of the currency is always "high" in comparison to the Euro or even the dollar. So from what I've read here so far the Swiss Franc does sound like a good bet for the answer.

In that case it sounds like you are trying to say what has maintained the greatest PPP value over time? I don't think your question strictly makes sense because people talk about strong and weak as relative values over time. On current prices, Norway and Sweden are top of the Big Mac Index and Switzerland is third.

http://en.wikipedia.org/wiki/Big_Mac_Index

thanks yes that is what I think MY SON was driving at. I will pass this on.

Mikeyboy

[Scuffers]

wolves_wanderer said:

Bing o said:

Scuffers said:

currently, it's the Aussie $

14th according to Wikipedia...

http://en.wikipedia.org/wiki/Strongest_Currency

In terms of its value maybe, but then the Latvian Lat is worth more than £1 - would you say that is a stronger currency than the pound/euro/dollar.

The Australian dollar is trading at all-time highs, and has recently gone above parity with the USD. I would define strength as appreciation in value against other currencies, therefore the aussie dollar is the strongest IMO.

exactly...

Aussies have had zero recession, their exports are at all time highs, exchange rate is at all time highs against every other currency.

[zac510]

I prefer your answer. The USD is the strongest because it's the benchmark upon which every other currency is based. Just look at how heavily correlated all of the currency pairs are to movements of the USD.