Danske prevails on mild conditions

CURRENCY FORECASTS

Teis Knuthsen, the bank's head of FX research in Copenhagen, said his central line of thinking begins with the idea that the world economy is in a fairly benign state at present. "Growth is robust, inflation is low, as are volatility and short-term interest rates."

Knuthsen said because monetary policy is being tightened, there is little to indicate that policy is set to go beyond neutral in 2007. Therefore, he said: "Risk-seeking will continue in financial markets. This alone suggests low

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