Aussie, Loonie to Rise to U.S. Dollar Parity, Citigroup Says

By Garfield Reynolds

Oct. 20 (Bloomberg) -- The Australian and Canadian dollars are likely to rise to parity against the U.S. currency, Citigroup said in a note to clients.

The greenback is weakening because foreign central banks are diversifying their reserves and U.S. investors are buying high-yielding emerging market assets, the bank said.

The euro will extend gains against the U.S. dollar and the British pound, and may reach parity against the U.K. currency in six to 12 months, Citigroup said.

To contact the reporter on this story: Garfield Reynolds in Sydney at greynolds1@bloomberg.net