Dollar predictions diverge
The sight of the US recovering from recession faster than Europe has strategists who came closest to predicting the dollar's value against the euro this year estimating that the dollar will strengthen as much as 17% in the second half. These predictions come following the greatest three-month fall since 2002 and will be answered on December 31.
Forecasts for the US currency are the most scattered in two years with fourth quarter predictions ranging from USD1.16 to USD1.55 per euro. However Deutsche Bank, which estimated just shy of where the dollar was trading two days before the quarter's end, is predicting a 17.1% gain to USD1.20 per euro by year's end. The gain would be the greenback's best two-quarter performance against the euro since 1981.
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