24/7 Live News Portal

Value of the dollar will fall 36% in relation to the euro during the next year, according to analyst

This weak dollar could hurt investors who hold US stocks and bonds.

Photo: ADEK BERRY / AFP / Getty Images

Ulf Lindahl, chief investment officer of AG Bisset financial services firm currency manager, said that estimates that the US currency will sink 36% against the euro over the next year, which would be a drop that has not been seen in more than a decade, according to Reuters.

The recent weakness of the dollar could hurt the large number of investors who are exposed to it through their holdings of US stocks and bonds.

Although bearish forecasts for the dollar are rife on Wall Street, few of them are as extreme as Lindahl’s. The US currency is near its lowest level in 27 months and it’s down about 11% from its 2020 high.

Lindah made this prediction thanks to research where broke down dollar fluctuations over decades into 15-year cycles. Here, the dollar is shown to weaken strongly against the euro before recovering most of the losses.

-You may also like: Old Navy to pay employees to serve as poll workers in 2020 elections