BNP Paribas has raised forecasts for the dollar

BNP Paribas currency strategists have raised the goal for the U.S. currency against the European euro and British pound, because the absence of clear signs of economic recovery, they said, would lead to an increase in demand for U.S. dollar as a currency of refuge. As stated in the bank, by 31 December 2009 the dollar could rise by 7% against the single European currency, reaching a level of 1.30 (the previous forecast of 1.37). According to the British pound against the U.S. currency may strengthen to 1.44, compared with the previous forecast of 1.63 bank. At BNP Paribas believes that market participants are beginning to doubt the imminent restoration of the world economy. The situation in the securities market is also becoming increasingly hostile. These factors allow a more positive value to further the prospects for the U.S. currency. At this time, a pair of Euro / dollar traded at $ 1.3900, a pair of pound / dollar is at around $ 1.6080.