Honda F1 website

MAY 31, 2005

Down goes the Euro

The European currency is losing value rapidly against the US dollar following France's vote on Sunday to reject a new European Constitution. The Euro has already been down to values which have not been seen since last autumn as Europe considers the implications of the vote. French President Jacques Chirac has already accepted the resignation of Prime Minister Jean-Pierre Raffarin and today appointed Dominque de Villepin, the foreign minister, to be the new Prime Minister.

Most of the Formula 1 teams now deal in Euros having burned their fingers in recent years after the value of the US dollar slid against the Euro and reduced their budgets in a dramatic fashion.

The Euro has been depreciating against the US dollar since the start of May because of the uncertainty over the vote. It is now down more than 4% since May 1.