Bank of Tokyo Mitsubishi Says Sell Euro, Dollar's Weakness is `Excessive'

Investors should sell the euro against the dollar, betting the single currency will decline to $1.2650, because speculation the Federal Reserve will increase asset purchases pushed the U.S. currency too low, Bank of Tokyo- Mitsubishi UFJ Ltd. said.

“The fear of quantitative easing is now approaching excessive levels,” Lee Hardman, a strategist in London, wrote in a research note today. “We recommend taking advantage of excessive dollar pessimism to position for the euro’s renewed descent.”

The euro rose 0.3 percent to $1.3663 as of 11:10 a.m. in London.