Bad forecast as dollar hits new lows

THE markets stepped up their continuing vote of no confidence in the dollar yesterday, as the greenback fell to new lows against the euro and exporters were warned of worse to come.

The euro touched $1.3047 for the first time as renewed selling of the dollar sent the single currency past its previous high watermark of $1.3005, which was set last week. It retreated slightly in later trading towards $1.3035.

But there will be no dollar recovery in the near term and the euro can be expected to teeter around the $1.40 mark over the next 12 months, Ulster Bank financial markets strategist Niall Dunne said last night.