Let's not get too excited here folks. Parity amounts to a Usd/Dem rate of about 1.95 and change. The late 80s and most of the 90s were spent with a Usd/Dem r

Let's not get too excited here folks. Parity amounts to a Usd/Dem rate of about 1.95 and change. The late 80s and most of the 90s were spent with a Usd/Dem rate of roughly 1.70 +/- 25 big figs and another 10 outside of that. Yes, I'm old. FX rates are mostly driven by (real) investment flow and expectations of future growth. Absolute and relative levels of interest rates tend to reflect that as well though there are some speculative flows that will chase carry trades.