The research of Centre for Economics and Business said that before the expected disintegration of the currency that is now used by 16 countries, Euro will go down to equivalence with the U. S. dollar in 2011.
As there is a probability of raising interest rates by the U. S. Federal Reserve at the end of this year, the decline of Euro will definitely accelerate, whereas the standard lending rate of European Central Bank will be on hold.
This year Euro has lost its value up to 15% alongside Dollar as Greece and other nations situated on the regions' boundary may not be able to reimburse the sum, unpaid. The Governments of the countries which have Euro as currency have agreed to create a 750 billion-euro ($907 billion) fund by taking help from International Monetary Fund.
"It's almost inevitable that the euro will break up at some point and it could be soon, it might be in five to 10 years time", CEBR Chief Executive, Douglas McWilliams said. He also said in his statement that in the meantime, there is a certainty that the Euro will be weak.
The euro rate chopped down to 0.65188% from Thursday's 0.65438%. The genuine rate was unchanged at 0.73125%.
