Euro/yen to trend lower

In assessing the outlook for the major currencies over the coming six months, uncertainty surrounding the timing for a US dollar rebound increases the difficulty in forecasting both euro/dollar and dollar/yen. Citigroup does expect a general dollar rebound during the first half of 2004, but we believe the outlook for euro/yen over this period will be clearer still. Citigroup does not believe the current levels of euro/yen will be maintained into 2004, with this pair likely to fall below 125

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