Economists optimistic about Asian currencies

Economists predict some exchange volatility, as the dollar weakens.

Economists are divided as to how high, if at all, the US Federal Reserve will hike interest rates. But the signs are there for a slowdown in US growth, ending the dollar's surge against European currencies.

Interest rates in Europe are close to neutral but not restrictively, says Paul Mortimer-Lee, head of market economics at BNP Paribas. Therefore, European growth will be 3.5% this year and close to 3% next year, and for the first time in many years you will see Europe growing faster than US next year. We think that that will have a big impact on the currency market.

Some volatility has also been predicted within the Asian region as...

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