Review of international markets: Year-end 1992: Currency tradres, analysts expect the dollar to post its oft-predicted rebound this year
Play it again, Sam.</br></br>For the past two years, currency analysts and traders predicted that a recovering U.S. economy and rising U.S. interest rates, coupled with slowing European economies and lower rates in Europe would spell a stronger dollar. They were wrong.</br></br>Guess what? They're singing the same tune again for 1993.</br></br>"Interest rate differentials will narrow in favor of the dollar. The U.S. economy will grow faster than most of its trading partners. U.S. equity markets look relatively attractive," says Lawrence A. Veit, an international economist at Brown Brothers Harriman & Co. "Some of the political and social uncertainties that exist abroad will not exist in the U.S., and we start from a position of the dollar being undervalued."</br></br>Many of these factors are already behind the dollar's rebound late last year from record lows in September.