Corporate foreign exchange news

Forex market news: Top forecasters say no end soon to dollar's slide

Monday, 23 November 2009 09:48:12 GMT

The most accurate foreign exchange market forecasters are predicting the depreciation of the dollar will continue even after the Federal Reserve begins lifting interest rates.
Standard Chartered, which was the most accurate forecaster polled by Bloomberg, expects the dollar to fall a further 5.4 per cent against the euro in 2010.
Callum Henderson, the Singapore-based global head of foreign-exchange strategy for Standard Chartered, told the news agency: "History tells us the dollar shouldn't start rising on a sustained basis until 12 months after the Fed starts to lift rates."
He added that rate hikes will not be expected for an extended period and will take a considerable time to reduce the oversupply of dollars on the global market.
The greenback has today (November 23rd) fallen against the euro for the first time in three days on speculation that the Federal Reserve will continue with unprecedented stimulus measures and near-zero interest rates well into next year.ADNFCR-2522-ID-19472507-ADNFCR
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