Euro ‘may hit parity with US dollar’

THE euro could reach parity with the US dollar if there are further shocks in the eurozone, according to Ulster Bank economist Simon Barry.

And he anticipates that the ECB will leave official rates in the eurozone at their present record of 1% until the second quarter of next year.

In the latest Ulster Bank Focus on Markets report, Mr Barry said the public finance crisis in the euro zone has triggered significant selling of the euro as developments of recent months have exposed major deficiencies in the institutional underpinnings and governance of EMU.