Dollar weakness to continue into 2004

The dollar’s trade-weighted index recently moved to a new low in the current cycle. Our forecasts for the major currencies suggest that new lows for the dollar index will soon be hit and that additional dollar weakness should then be expected for many months to come. Our recently revised projections for the next 12 months point to an even weaker dollar than we previously anticipated. We now expect the euro to rise to 1.25 and the yen to appreciate to 102 against the dollar by this time next

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