British analysts expect weakening of dollar as reserve currency
Azerbaijan, Baku, Jan.11 / Trend , A.Badalova /
Analysts of one of the leading British consulting companies on economic research Capital Economics expect weakening of the role of US dollar as a reserve currency.
"Using the dollar as a reserve currency is likely to decrease in 2010," British analysts said in a report.
Nevertheless, the British analysts forecast the strengthening of the position of the American currency compared to the European. Analysts expect the dollar-to-euro rate to strengthen up to 1.3 euros in 2010. According to analysts, dollar-to-euro rate will remain at the same level in 2011.
"We expect the U.S. interest rates to remain at the current level in the foreseeable future, but market speculations on tough monetary policy can still support the American currency," the report said. At present, the main interest rate of the Federal Reserve System (USA) fluctuates between 0 and 0.25 percent annually.
The analysts forecast dollar-to-euro rate to amount to 1.45 euros in the first and second quarters of 2010, afterwards increasing to 1.35 euros in the third and up to 1.3 euros in the fourth quarter.
Dollar-to-euro rate on Thursday Jan. 7 amounted to 1.4304 euro.