Larry Fink says euro will drop to $1.20 level

LARRY Fink, the founder of BlackRock, has warned the euro will depreciate “considerably” against the dollar, to $1.25 or $1.20, as a result of the Eurozone crisis.

Fink said the dollar would have been even stronger were it not for the US Federal Reserve’s decision to begin another round of quantitative easing.

He said the euro would continue to take a battering because of the “fundamental problem” that the banking sector owns the bulk of European sovereign credit. Fink added Eurozone banks and nations should reduce their reliance on short-term funding.