Euro has scope to top US$1.10 by end-2023

Gaining strength: A file picture showing the euro and US dollar bills. The euro is trading around US$1.04 – more than 8% above its nadir from late September. — AFP

FRANKFURT: The euro has scope to bounce back above US$1.10 (RM5) by the end of next year, taking it to levels last seen in the early months of the Russia-Ukraine war, before energy and economic concerns helped drag the common currency below parity with the greenback for the first time in decades.

Deutsche Bank AG’s Alan Ruskin and George Saravelos reckoned that the euro could rise to that level, even without a major change in the geopolitical environment, if – as the bank suspects – the US monetary authority errs on the side of easing monetary policy in the second half of next year and the European Central Bank is still increasing borrowing costs.