Broker predicts euro value to overtake dollar

Heavyweight US broker Merrill Lynch thinks the euro could break past parity against the dollar this summer but remains confident superior US productivity growth should limit the dollar's downside by the year-end.

Falling equities, doubts about the US recovery and terrorist fears have heaped misery on the dollar, which continues to plummet, particularly against the euro. The European single currency broke through the $0.98 barrier earlier for the first time since February 2000.