Euro’s rise against dollar will not last, poll finds

The euro’s modest upturn against the dollar since the start of the year will soon run out of steam, according to a Reuters poll of over 60 analysts whose euro currency forecasts were the lowest since September 2010.

Some promising economic data and hopes Greece will yet avoid a damaging sovereign debt default helped push the euro around 3.5% higher since Jan 16 to around $1.31 yesterday.

But strategists were pessimistic about the quality of the rally, suggesting the euro will revert to its longer-term trend of modest depreciation against the dollar since hitting $1.49 a year ago.