While addressing a seminar on Euro and its implications he said that a single currency for Europe will do away with the country risk leaving the companies to consider only the partner's risk.

Given the fundamentals of the countries that form a part of European Union, Euro is unlikely to fail in the future and will be on par with the Dollar, he said.

The strength of Euro will be determined by exporters and investors and there are indications that the currency will find favour with them, said P Krishnamurthy, deputy general manager Reserve Bank of India.

He said there is a general feeling that the European central bank may not be strong enough to provide strength to the currency. There are sufficient indications of Euro becoming a strong currency nullify the argument of Euro gettingweaker, he said.

The introduction of Euro will give rise to thriving of the bonds market and the European investors will move away from deposits to securitisaton and equities, Krishnamurthy said.

The removal of barriers will trigger a smooth flow of capital among European countries creating an active market for securities, he added.

The seminar was organised by Synthetic Rayon & Exports Promotion Council (SRTEPC). RL Toshniwal, chairman SRTEPC, Sanjeev Sanyal, regional economist Deutsche Bank, also spoke at the seminar.