Reasons for rapid growth of euro - OPINION

Baku. 15 October. REPORT.AZ/ In recent days, in world currency markets, the rise of euro against the dollar reached a level of 1.15. Research Group Report states that with increasing the likelihood that the Federal Reserve (Fed) will not raise its key interest rate in 2015, the dollar relative to other world currencies started to weaken. Fed justifies nepovyshenie rate so that inflation in the US has not reached the target level of 2%, and in the global financial markets have been strong fluctuations.

Since the release of euro in circulation on 1 January 1999 in July 2008 reached the level of 1,6038 USD/EUR. Then, after decision of the European Central Bank (ECB) monetary expansion of the euro beginning to fall in price and on 16 March 2015 with the expectation of the Fed raising the key rate down to the level of 1,0456 USD/EUR. During this year owing to delays in the Fed's decision to raise the key rate euro began to strengthen and now has reached the level of 1,15 USD/EUR.

Despite the fact that, Fed is now the main factor affecting the euro, ECB may decide a new monetary expansion, as in the euro zone and the risks of deflation are rising gradually. Even if the Fed will decide to increase the key rate, it will be minimal, at 0.25-0.5%, growth will also be lower in 2016. For this reason, projected growth of the USD/EUR to the level of 1,20-1,22. However, the 5-year term inevitably in achievement of USD/EUR parity.

In Azerbaijan in the next 3 months growth of the EUR/AZN to the level of 1,26-1,28 is expected.