Suzanne
18-02-06, 10:03 AM
Last year, the US dollar registered a rise in its value toward the Common European Currency (Euro) with about 17 euro cents, but the leading investment banks forecast that a sharp sinking of the US dollar was to follow at the end of 2006 and that the US currency would be exchanged at about 1.30-1.40 US dollars for 1 euro.
The value of the US dollar has been going up in the last several weeks, but the expectations for a serious decline in the value of the US currency in 2006 still remain.
These forecasts are based on the opinion that the rates of the US economic growth will slow down and that the US Central Bank - the Federal Reserve System (FRS) will end the hikes in the basic interests, while the European Central Bank (ECB) will just then start its cycle of rises.
As a result of the falling interest differentiation between the two currencies, the euro will register drastic jumps in its value, analysts maintain.
But these analysts underestimate the acceleration, which the US economy has already picked up.
Andrey Prumov
http://www.standartnews.com/archive/2006/02/18/english/opinion/s4710_2.htm
The value of the US dollar has been going up in the last several weeks, but the expectations for a serious decline in the value of the US currency in 2006 still remain.
These forecasts are based on the opinion that the rates of the US economic growth will slow down and that the US Central Bank - the Federal Reserve System (FRS) will end the hikes in the basic interests, while the European Central Bank (ECB) will just then start its cycle of rises.
As a result of the falling interest differentiation between the two currencies, the euro will register drastic jumps in its value, analysts maintain.
But these analysts underestimate the acceleration, which the US economy has already picked up.
Andrey Prumov
http://www.standartnews.com/archive/2006/02/18/english/opinion/s4710_2.htm