Bloomberg survey: the dollar will rise in long-term.

Bloomberg survey: the dollar will rise in long-term.

The markets are extremely optimistic on dollar as US economy is expected to grow faster than European and Japanese ones.  Bloomberg Professional Global Confidence Index showed that American currency will rise during the next 6 months. The indicator climbed from 55.72 in February to 66.39 this month. The maximal index of 68.86 points was observed in September 2008, when Lehman Brothers’ bankruptcy made investors demand for dollar as a refuge currency.

Brown Brothers Harriman & Co. in New York claimed that dollar benefited from the growth and interest-rate differentials and Greek problems contributed to strengthening of dollar.

Mizuho Corporate Bank Ltd. in New York predicts that USA will be one of the first to raise interest rates. Federal Reserve may increase its target rate from a range of zero to 0.25% in the third quarter to 0.5%, according to a Bloomberg News survey of 75 economists. The European Central Bank is likely to lift up its key rate from 1% to 1.25% in the fourth quarter, and the Bank of Japan may keep its rate at 0.1% up to the second quarter of 2011.

Market news and analytics — FBS

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