Recently, the dollar has fallen to its lowest level in three years against a basket of currencies, and hit its lowest level in three and a half years against the Euro. Kyle Chapman from the Ballinger Group stated that this situation could have negative effects on the US economy.
Chapman predicts that the possibility of the US Federal Reserve lowering interest rates further could push the value of the Euro up to 1.20 dollars. In this context, he emphasized that there is significant room for the dollar to lose further value.
The DXY dollar index fell to 97.789, a decline of 0.8 percent, while the Euro rose 1 percent to 1.1610 dollars. These developments are increasing expectations in the markets that the Euro may continue to strengthen against the dollar.
News Source: 12punto
