Forecast: US-dollar may soar 4% until year end

Baku. 25 September. REPORT.AZ/ The US-dollar rate against the main rival of US-dollar can grow by about 4% by late 2017. 

Analytical Group of Report News Agency informs, there are number of reasons for the strengthening of the dollar. First, the euro has fallen by 14.8% over the previous year compared to the euro. There is no reason for such a reduction.

Secondly, discount rate in US is now 1-1.25%, with 0% in Europe. If the Fed begins to reduce its balance, the European Central Bank is still pursuing monetary stimulus.

Third, the fact that increasing probability of one-time increase in discount rate by Fed until the end of the year and reducing the balance more quickly from the beginning of 2018, will create dollar deficiency in the financial markets.

Fourthly, the results of the parliamentary elections held yesterday in Germany are a threat to the euro. Thus, political critics think that the emerging coalition government will not continue until the next election that will take place four years later.

"It is predicted that the listed factors would lower the euro and strengthen US-dollar. While the dollar is expected to fall slightly in early 2018, the strengthening process is expected to slow down in the second half of the year and fall below the euro's parity”, analysts said.