That’s the view of Standard Bank, which sees the euro rising to USD 1.30 in a year’s time, spurred in part by the European Union’s plan to sell EUR 225 billion of green debt as part of its pandemic recovery fund. With investor demand surging for environmentally-friendly assets, that could favor inflows into the common currency, it said.
"We suspect that if a country, or region, can really lead the way in this type of investment it could carry its currency with it," wrote Steve Barrow, head of the bank’s foreign-exchange strategy, in a note to clients Tuesday. "In contrast, those that lag behind could get left behind, not just in terms of their ESG credentials but also in terms of their currency’s performance."
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