Euro Seen Vulnerable as Blowback From Sanctions on Russia Bites

European Union sanctions on Russia risk inadvertently denting the euro-area’s economic recovery and accelerating a decline in the currency, foreign-exchange strategists said.

Deteriorating trade relations with Russia led Barclays Plc economists to cut their forecast for euro-zone gross domestic product, while Royal Bank of Scotland Group Plc reiterated its forecast the euro will weaken as the sanctions take hold. Germany will suffer due to its close ties with the Russian economy, according to the Sentix institute.