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SUNDAY, NOVEMBER 22, 2009
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Dollar Headed for Biggest Gains Since '81: Bankers

Greenback set for 17.1% gain against euro

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(Newser) – The dollar is poised for its biggest advances in 28 years, according to Deutsche Bank, which predicts a 17.1% gain against the euro by the end of the year. Other banks polled by Bloomberg are similarly bullish about the greenback, which has just endured its worst quarter since 2002. Currently trading at $1.40 per euro, it should strengthen to $1.20 by year's end, according to Deutsche.

"You don’t have to bet on the recovery to be bullish on the dollar," said one trader. "If the situation stays as bad as it is, the dollar is a safe haven. And if the economy turns the corner, the US will be the first to get out of the recession."

Forecasters at Deutsche Bank predict a gain of 17.1% for the dollar against the euro by year's end.
Forecasters at Deutsche Bank predict a gain of 17.1% for the dollar against the euro by year's end.   (©bionicteaching)
One euro currently buys $1.40, after the greenback endured its worst quarter in years.
One euro currently buys $1.40, after the greenback endured its worst quarter in years.   (©bionicteaching)
The dollar may be poised for a comeback as the global recession wanes.
The dollar may be poised for a comeback as the global recession wanes.   (©a little tune)
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13 comments
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Lula
Jun 29, 09 9:52 AM CDT
Let's hope so. Reply
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0
CountChocula
Jun 29, 09 9:55 AM CDT
Biggest lie ever told Reply
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-1
Snarfeh
Jun 29, 09 10:26 AM CDT
If they are right and the dollar gains by the end of the year, it will be Obama's fault, eh? Haha... Reply
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+4
IN RESPONSE:
IndependentThinker
Jun 29, 09 11:34 AM CDT
No it will be policies set up by Bush before he left office.
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0
SBS
Jun 29, 09 10:52 AM CDT
Don't know if this is good or bad. What does this do to the price of exports from America? On the other hand is it good for Americans with savings? Reply
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+1

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