The euro, the second best-performing major currency this year, has increased so much that it will weigh on economic growth in the euro region going into 2014, according to Nomura Holdings Inc.’s Jens Nordvig.
The strength of the 17-nation shared currency, which has increased 2.4 percent versus the dollar year-to-date, the most after Denmark’s krone, will trim euro area growth by 0.5 percent in 2014, said Nordvig. The shared currency was the fifth-worst performer among the greenback’s 16 most-traded counterparts in 2012.
“If you look at how much the euro has moved, and the impact that’s going to have on exports, it’s starting to be a real issue,” Nordvig, the New York-based managing director of currency research at Nomura, said in an interview on Bloomberg Radio’s “Surveillance” with Tom Keene and Michael McKee. “Last year, it was a dilemma about coming up with policies that really stated very clearly the euro is here to stay. It’s an ironic situation.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.