BLBG: UBS Raises Dollar Forecasts on U.S. Recovery Signs, Europe Debt Concerns
UBS AG raised one-month forecasts for the dollar on signs of recovery in the U.S. economy and lingering concerns about Europe’s fiscal problems.
The world’s second-largest foreign-exchange trader sees the greenback advancing to $1.30 per euro in one month, compared with its previous forecast of $1.40, according to a research note dated yesterday. The U.S. currency may climb to 85 yen in one month, from a previous target of 80 yen, it said.
“Europe’s fiscal troubles are set to continue and the U.S. economy is starting to revive after summer weakness,” analysts led by Mansoor Mohi-uddin, a Singapore-based chief currency strategist at UBS, wrote in the note. “We expect investors to look more favorably on the dollar now.”
The dollar traded as strong as $1.3562 in Tokyo today, the highest level since Sept. 30. The greenback traded at 83.14 yen from 83.07 yesterday in New York, when it touched 83.27 yen, matching the Oct. 6 high.
To contact the reporter on this story: Monami Yui in Tokyo at myui1@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
