Further dollar falls needed

The 1.31 forecast meant it was just 0.15% off the actual rate. However, David de Garis, senior treasury economist at the bank, said it had benefited over the longer term from a view that the greenback is fundamentally weak. He said: "In our view the intractability of the US current account and budget deficits and sluggish US exports highlight the need for further falls in the big dollar. ANZ expects that within a three- to six-month timeframe the euro will bounce again to hit 1.37–1.40 levels