U.S. Dollar Will Achieve Parity With Euro by 2017, Says Goldman
The euro is on its way to parity with the dollar by the end of 2017, say analysts at Goldman Sachs Group Inc. The currency has dropped 5.75% since hitting a 2014 high in March, closing on Friday at 1.3133. Goldman says that decline is the beginning of a long drive lower. Higher U.S. interest rates versus those in the euro zone will cause investors to move money out of Europe and into higher-yielding markets, writes Goldman’s currency research group.
In six months, Goldman predicts the euro will drop to $1.25. In 12 months, it will be at $1.20. The single currency should hit $1.15 by the end of 2015, and $1.05 one year later. By 2017, the euro will hit parity for the first time since 2002, the year it entered circulation as a physical currency