Euro could reach parity with dollar: German economist

Battered by the Greek fiscal crisis, the euro could weaken to the point of parity with the US dollar, a top German economist said Sunday, as others warned of inflation in Europe's biggest economy.
"As long as uncertainty over Greece and other countries on the periphery of the euro area continues, the euro will remain under pressure," Thomas Mayer, chief economist at Deutsche Bank, told the Bild am Sonntag weekly.
On Friday, as volatile markets closed for the week, the euro fetched 1.2755 dollars as investors warned that failure to nail down a credible rescue plan at Sunday's meeting of EU finance ministers could pressure the euro even more.
Meanwhile, other economists warned of the dangers of inflation returning in Germany in the wake of the Greek crisis.