Western analysts' short-term forecasts on U.S. dollar rate

Azerbaijan, Baku, Feb. 10 / Trend A. Badalova /

The positions of the U.S. dollar dropping much towards other world currencies since late 2009, began to recover rapidly. In particular, over the past week the American currency increased towards the European one by 1.5 percent. On Monday, February 8 the dollar rate towards the euro was $1.3675 per euro.

Though concerns about poor dollar in the world market were voiced last year, today most analysts predict its strengthening and, in particular, towards the euro.

Although made in the past year, concerns about the dollar losing its position in the world market today, most analysts predict its strengthening and, in particular, in relation to the euro.

Analysts of one of British leading consulting firms for economic research Capital Economics expect the strengthening of U.S. currency throughout 2010.

According to the forecasts of British analysts, the dollar rate to the euro can reach $1.25 per euro by late 2010.

Analysts of U.S. bank Morgan Stanley have recently raised their forecasts on the positions of the U.S. currency this year. Analysts predict strengthening of the dollar rate by $1.24 per euro towards $1.32 per euro by late 2010. Analysts expected it earlier.

Analysts of Bank of America - Merrill Lynch propose restoration of the dollar rate towards the euro by $1.3 per euro. Analysts call the rapid recovery of the U.S. economy and increasing the interest rates by the U.S. Federal Reserve System as the main reasons for strengthening the dollar.

However, not all analysts share the opinion about continuation to strengthen the U.S. dollar this year.

Thus, analysts of one of the world's largest U.S. bank JPMorgan expect for weakening of the dollar against the euro by $1.62 dollars per euro in the second quarter of 2010.

Germany's Deutsche Bank forecasts U.S. dollar exchange rate towards the European currency worth $1.4 per euro by late 2010.

Analysts' forecasts on dollar rate to euro ($/1€):