LONDON, March 23 Barclays became on Wednesday
the latest big bank to back off its forecast for the euro to
fall below parity with the dollar this year, saying it sees the
single currency falling to as low as $1.03 this year before
Currency analysts at the world's sixth biggest foreign
exchange trading bank say the political risk from a series of
elections in Europe has ebbed, and that the European Central
Bank will move to normalise its ultra-loose monetary policy
quicker than previously anticipated.
"Politics will be less of a downward force than we initially
thought, and the ECB is a bit more comfortable in normalising
policy," said Hamish Pepper, an FX strategist at Barclays.
He and his colleagues had previously pencilled in a decline
to $0.99 by the end of this year.
(Reporting by Jamie McGeever; Editing by Nigel Stephenson)