Morgan Stanley says Euro will fall more


“Financial problems located initially in Greece are becoming the problems of Europe as a whole,” – said in Morgan Stanley’s report. According to the analysts forecast Euro will fall to $1,12 in the I quarter of 2011 and then will start to recover.

Dollar will have strong support to the end of 2010 because of the US economy’s extremely positive growth, according to Morgan Stanley.

Euro’s value on the world currency market in $1,2408 today. On the 19 of May European currency fell to the lowest point for the last 4 years - $1,2144. The reasons of this is Germany’s restrictions on financial speculations with stock and currency and the situation in Greece.

During next two-three months we can see the fall of Euro to $1,16 says Aleksey Moiseev, chief economist  of “Renaissance Capital”. According to his point of view it will happen because of new rising problems in banks and governments, that won’t carry out commitments in budget reduction. But in the end of the year investors will pay attention to remaining problems of US economy: budget and commercial property, - says Aleksey Moiseev.

According to his forecast Euro’s value will be $1,24-$1,26 in the end of the year. Russian rouble will be at the point of 28,4 rouble/$ (30,49 rouble/$ today). The growth in rouble’s value will be because of raw-materils’ prices that will increase.

BNP Paribas forecasted that Euro will fall lower than dollar about a week ago. Experts from UBS, Bank, Royal Bank of Scotland иBank of America Merrill Lynch expect Euro exchange rate of about $1,15-$1,26 in the end of the year. Euro may fall to $1,16 in last three month say Credit Suisse.

According to belarusian portal TUT.BY