The euro's ascent in April against the dollar will not last, according to a Reuters poll of foreign exchange strategists who see the parlous state of Europe's economies undermining the currency. The euro strengthened around 2 percent against the dollar in April, largely because of shaky economic data from the United States that cemented expectations monetary stimulus there had further to run.
But with growing expectations the European Central Bank will take further action to stimulate the recession-hit euro zone economies - even after just cutting rates - the more than 60 foreign exchange strategists polled this week saw little upside for the region's currency.
Although Wednesday's poll showed the euro holding around $1.30 in a month's time, just shy of its Wednesday trading level around $1.31, it is expected to weaken over the next year - to $1.28 in three months, and $1.24 in 12.