CURRENCY FORECASTS

CURRENCY FORECASTS Each quarter we ask J.P. Morgan to predict dollar exchange rates for 16 currencies in a selection of developed and emerging economies. The forecasts are for the end of March 2000 and the end of December 2000. The dollar is forecast to weaken against all the rich-country and many of the developing-country currencies in our table over the next 12 months. The euro is expected to bounce back from its flirtation with dollar parity to as high as $1.15 a year from now, just shy of its launch rate of $1.18 in January. The yen too is seen appreciating. A year from now, one dollar is forecast to fetch only ¥98. Even the hitherto-plunging Russian rouble is tipped to strengthen slightly against the dollar. But the Chinese yuan is expected to be devalued by more than 10% between March and December next year.