Euro 'could fall further in 2011'

Forex traders that have been watching the recent decline in the value of the euro against many major currencies may be interested in the opinion of one expert who suggested that it has not yet reached its lowest point.

Greg Gibbs, currency strategist at the Royal Bank of Scotland Group in Sydney, told Bloomberg that it is hard to see the situation improving in the near future.

At 08:40 BST today (September 13th), the euro dipped a further 0.8 per cent against the Japanese currency to 104.79 yen, following a drop to 103.90 yen yesterday - the lowest level on record since June 2001.

It also struggled against the dollar this morning, falling 0.5 per cent to $1.3617.

However, Mr Gibbs forecast that the problems facing the European single currency are unlikely to abate any time soon, commenting: "The euro can easily fall significantly further before the year's out because there's still scope for policy easing by the European Central Bank."

Yesterday, the euro fell to a six-month low against the pound as it was valued at just 85.31p.

Posted by Clive Arneil