Barclays PLC (BCS, BARC.LN) said Monday that it raised its forecasts for the euro exchange rate against the dollar and pound, citing an improvement in the euro-zone economy. The world's third biggest currency-dealing bank said it now expects the euro to trade at $1.36 against the buck in three months time from $1.32 previously, and at $1.32 in six months time from $1.26 previously. Barclays also said it expects the euro to trade at $1.28 in 12 months, having previously had a forecast of $1.22. In addition, the U.K. bank lowered its sterling forecasts against the dollar. It said it expects the pound to trade at $1.56 in the next three months from $1.62 and to $1.55 from $1.58 over six months. Barclays raised its euro forecast against the pound to GBP0.87 from GBP0.82 over three months and to GBP0.85 from GBP0.80 over six months.

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