Dollar in relative decline against EU currencies says analyst
The dollar will fall to $2.00 against the pound and $1.35 against the euro within the next three months as the US rate advantage is eroded, a currency analyst has predicted.
The US currency was valued at $1.3295 on the euro in early Tokyo trading, from $1.3302 previously, and at $1.9443 on sterling, from
The outlook was provided by Daisaku Ueno of Japan's largest brokerage, Nomura Securities. Mr Ueno was recently named by Nikkei as Japan's best exchange analyst.
"European currencies such as the euro and British pound will remain strong in three months," he told Bloomberg.
"The markets are pricing in two rate cuts by the Fed this year, while the UK and European Central Banks will probably raise rates once more, narrowing yield gaps."
The euro and pound have gained five per cent and 7.3 per cent respectively since the Federal Reserve announced the last of 17 consecutive rate rises on June 29th last year.