Rodney
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Dollar May Decline Toward $1.53 Euros - 2008/09/25 20:13
Good day, Traders! Since the American economy is still teetering, investors are advised to buy the euro against the dollar as weakness in the world's largest economy and a slow adjustment of its housing sector will push the greenback lower, according to Citigroup Global Markets Inc.
The Euro may rise as high as $1.53 versus the U.S. currency as the market focuses on underlying fundamentals once a plan to bail out U.S. banks is approved, according to a research report from a team of analysts at the world's fourth-biggest currency trader. The U.S. is facing ``grave threats'' to financial stability, Federal Reserve Chairman Ben S. Bernanke said yesterday in Washington.
Investors should buy the euro at $1.4715, targeting an initial advance to $1.4950 and onward to $1.53, the report said. They should sell the currency if it weakens to $1.4603, Citigroup said.
The dollar traded at $1.4636 per euro as of 9:36 a.m. in Tokyo from $1.4621 yesterday. The U.S. currency has risen 9.6 percent versus the euro since reaching a record low of $1.6038 on July 15.
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