FX forecast for June 3 – Euro hits record high

This morning, the European common currency reached a yearly record high on the international currency market, being traded at $1.4330, Financial Brains director, PhD Sveatoslav Mihalache has told Info-Prim Neo. Yesterday, by midday, the euro traded at about $1.4120, but the news from Moscow changed the situation. A Kremlin top official announced that the agenda of the BRIC (the emerging economies Brazil, Russia, India and China) summit set to take place this month will include discussions on the creation of a ‘supranational’ currency and on the use of the Special Drawing Rights as reserve currency. The news was evidently to the detriment of the US dollar and the euro climbed to $1.4270 and ultimately to a new record high of $1.4330. This ‘artificial’ appreciation of the European currency astounded even its founders. Economics Nobel Prize winner Robert Mundell, who is dubbed “the father of the European dollar”, said in an interview that he does not see reasons for such a growth. He said that the EU’s confidence in its currency is in general a good thing, but such an appreciation is not beneficial when there is a recession and this will affect the recovery of the EU economy, especially the creditors, exporters and unemployment rate, according to Mandell. [EUR/MDL:] At the currency exchange facilities in Moldova, the euro will also grow significantly. The rates will range between 15.80 – 15.88 (bid) and 15.95 – 16.02 (ask). [USD/MDL:] The US dollar will be traded at the same rates as yesterday: 11.09 – 11.14 (bid) and 11.19 – 11.24 (ask). For further details, visit www.fb.md