The euro may be plumbing new depths, but German Finance Minister Hans Eichel is in an upbeat mood. "We need to keep calm about the exchange rate," he said after the currency plunged to a then-record low of 88.38￠on Aug. 31. "The main thing is that the economy is performing well." That kind of cheeriness is welcome in Europe, long accustomed to gloomy economic news. But the euro's yearlong slide is still giving skeptics plenty to worry about: The currency dipped even after the European Central Bank's recent move to hike rates. On Sept. 6, it dropped below 880 for the first time. If the euro is weak, something has got to be wrong—right?
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