Euro 'nears end of fall against sterling'

THE euro will not fall far below 65 pence sterling in the coming weeks, according to Dr Dan McLaughlin, Group Chief Economist Bank of Ireland.

The euro has put in a relatively weak performance in the first half of 2004, experiencing a 7% fall against the US dollar and sterling, due mainly to a weakening of trade and private capital flows in the euro area.

Writing in Bank of Ireland Global Markets Economic Bulletin for June, Dr McLaughlin predicts that, with the euro poised at a number of key technical levels, events over the next few weeks will determine the euro's performance for the remainder of the year.