British analysts forecast strengthening of U.S dollar position in second half of 2009
Azerbaijan, Baku, July 20 / Trend A. Badalova /
Position of U.S dollar will strengthen in the second half of 2009, analysts of one of leading British consulting companies on economic research Capital Economics said.
According to analysts, rate of $1 to €1 will increase 1.2 point by spring 2010.
Rate of dollar dropped towards world currencies up to two-week minimum amid improving economic forecasts. Rate of dollar to Euro dropped 1.4181 during morning session on July 20.
There are some reasons for positive estimation of U.S dollar, Capital Economics analysts said. According to them, relative difference in growth of the biggest economies will support dollar.
According to British analysts, economic growth will be weak the USA in 2010 - 1 percent, United Kingdom - 0.5 percent.
Other reason includes tendency of dollar to develop parallel with oil prices recently.
According to Capital Economics analysts, oil prices will drop $50 per barrel amid disappointments concerning restoration of world economy. In its turn, it will assist to reduce foreign trade deficit of the USA and support U.S currency.
Great role in international financial deals, including role of reserve currency for special borrowing rights of the international currency fund is being considered recently.
But, according to British analysts, one fails to replace function of dollar as reserve currency of SDR.
Though future of SDR as reserve currency looks like improbable. But hey can tool to assist restoration of balance and growth of world demand, Capital Economics said.
According to WB president Robert Zoellick, nothing threatens positions of U.S dollar as major reserve currency in world economy. But he said that the USA needs seriously consider opinion of several world countries on advisability of transfer to over national reserve currency.
In his turn, U.S minister of finance Timothy Geithner said that U.S dollar will remain major reserve currency in future. But the U.S President Barack Obama's administration will continue follow conception of strong dollar in future.
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