Declining dollar may force ECB rates rise

HIGHER interest rates and a continuing depreciation of the dollar in 2004 are being anticipated on the back of economic recovery, but this could force a cut in ECB rates.

In an extensive review of the global economic outlook US merchant bankers Brown Brothers Harriman (BBH) said the euro’s strength will continue to the end of 2004. It forecast:

The euro will hit $1.25 in the last quarter of 2004.